Thematic investing is a technique of recognizing a trend – due to economic, demographic, geopolitical, regulatory or technological factors – and identifying the investment opportunities that would benefit from that trend. It has long been a staple in institutional portfolios, but it traditionally required dedicated research teams and active management, making it prohibitively expensive to individual investors.
Impact investing is associated with positive social and environmental change in addition to financial returns. While it has not always been profitable, impact investing now allows for a number of investment opportunities that can reasonably be expected to generate positive returns in addition to doing good.