FXEU-Thematic_Indices_hub-desktop-1

Gain exposure to an entire sector in one trade

Thematic Indices allow you to trade a basket of equities in one deal that focuses on compelling themes and sector specific industries.
FXEU-Thematic_Indices_hub-mobile-1

  • Sector spotlight

    Trade shares in an entire sector for more exposure

  • Buy and sell the index

    Benefit from taking both long and short positions

  • Low margin trading

    Margins on Thematic Indices start from 10%

What are Thematic Indices?

  • shares_Gradient

    Handpicked groups of shares

    Tailor-made baskets of US stocks that reflect sectors, industries and themes that can be traded in a single deal.
  • range_of_markets_Gradient

    Follow the market trends

    From AI stocks to cannabis producers, trade an entire index of the sector and gain wider exposure.
  • charts_Gradient

    Diversify your portfolio

    Balance the risk in your portfolio by going long or short on an entire sector rather than a single stock.
Options trading

Our collection of Thematic Indices

What makes Thematic Indices move?

Price action amongst the constituents of each index move the overall value, like traditional benchmark indices. These can include:

Earnings reports
Whether the hit or miss expectations, earnings season can see vast volatility for stocks.

Macroeconomic events
From geopolitical tensions to natural disasters, global events can influence market movements.

News within the theme
Breakthroughs, supply chain issues and scandal can often impact the price performance.

Open account
What_makes_thematic_indices_move

Thematic Indices FAQ

How do Thematic Indices work?

Thematic Indices operate in the same manner as traditional stock indices by creating a price based on either the stock price values and/or the market capitalisations of each of the constituents and dividing it by that day’s divisor.

Each individual index will have its own method of populating its constituent list. Whether it is based on their performance within the sector, it’s overall revenue in comparison to others, or their score accumulated within their segment. For example, stocks in the ESG index are based on their Environmental, Social and Governance policy scores.

Learn more about how indices work here.

Was this answer helpful?

What are Thematic Indices?

A Thematic Index is a curated basket of stocks that follow a specific investment theme. Each index can be focused on a sector, a type of industry or ones that follow a particular scoring or performance metric.

Traders can use Thematic Indices to gain exposure to a larger collection of stocks rather than trading them individually. This can be used to take advantage of price movements and trends through a single position.

At FOREX.com, you can trade Thematic Indices on the following themes:

  • Electric vehicles
  • FAANG+
  • Cannabis
  • AI
  • ESG
  • Magnificent 7

Learn more about index trading here.

Was this answer helpful?