“Clients are looking to step away a little bit more generally from traditional market cap-weighed indices, taking some slightly tactical views as well,” Rebello said. “I think thematics are playing kind of nicely into that space.”
Another benefit of a thematic ETF is the diversification they provide based on their construction alone, she said.
“With thematic ETFs, you can have diversification of stocks within a precise thematic,” Rebello said. “Then you can have a little bit of diversification of themes or sub-themes in a broader thematic and that’s what we’re aiming to do with CRTC.”
The CRTC has an expense ratio of 35 basis points and is available on most major platforms, she said.