ANEW targets companies positioned to benefit from five transformational megatrends: genomics, automation, next-gen internet, fintech, and space exploration. The fund bets that these technologies will fundamentally reshape the global economy over the next decade.
How It Works
The ETF tracks an MSCI index that screens global stocks for revenue exposure to transformational themes, then weights them by market cap with sector caps to prevent concentration. Holdings span from established tech giants dabbling in these areas to pure-play disruptors. The index rebalances quarterly to capture emerging players while maintaining liquidity requirements.
Key Features
- Covers five megatrends in one fund rather than requiring multiple thematic ETFs
- Global scope captures innovation beyond US borders, including emerging market tech leaders
- Quarterly rebalancing keeps pace with rapidly evolving sectors unlike annual resets
Risks
- Thematic investing means betting on narratives that may take decades to play out or could fizzle entirely
- High correlation to growth stocks means significant drawdowns when rates rise or sentiment shifts
- Many holdings are unprofitable companies burning cash - vulnerable to funding crunches
Who Should Own This
Best suited for growth-oriented investors with 10+ year horizons who want diversified exposure to multiple disruption themes without picking individual winners. Works as a 5-10% satellite position for those who believe traditional sector allocations miss where future value creation will occur.