Megatrends

You can't stop progress. Now you can invest in it.
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Watch 'Innovation Investing is Growth Investing'
A conversation about Innovation ETFs
What are Megatrends?
  • Megatrends represent the disruptive innovations driving powerful global movements that are predicted to direct future stock performance for the companies that are best positioned to take advantage of each emerging theme
  • Megatrends emerge from demographic shifts, technological advances and adaption, and evolving consumer habits and behaviours. Megatrends are the drivers of disruptive innovations that are anticipated to transform the way we live and interact with the world
  • Companies with exposure to these Megatrends are the leaders, enablers and beneficiaries of these disruptive innovations, and this innovation is key to growth
  • Although there are many, BMO ETFs has identified several emergent Megatrends which have captured investment interest:

    • Genomics
    • Next Generation Internet
    • Autonomous Technology
    • Fintech
    • Clean Energy

Thematic Investing with BMO ETFs
Disruptive Innovations ETFs
Where do Megatrends fit in portfolio construction?
  • Core Allocations
    As a core holding, these exposures will evolve over time and will continue to capture growth as disruptive innovation plays out. Because thematic investing is top down and forward looking, it is capturing emerging trends that will continue to evolve and remain relevant as growth themes for the long term. BMO’s Innovation ETFs provide an all-cap, global and diversified exposure to these emergent themes, furthering the case to make them well suited as core portfolio holdings.
  • Tactical Allocations
    Investors who have high conviction views on disruptive innovation at certain points may want to emphasize a specific megatrend as a tactical position. For example, adding genomics to play on vaccine development or adding clean energy to play on the anticipated Biden Administration’s policy emphasis in this space.
  • Sector
    Thematic Investing is not constrained by sector classifications, however disruptive innovations are biased to certain sectors. Investors can add exposure to a megatrend as a substitute for a sector tilt in a portfolio. Further global adaption in addition to lowering costs to access each trend will all remain long-term tailwinds for these themes.
  • Growth Sleeve
    For investors who that desire growth sleeve within their portfolio to fund investment goals. Emerging trends are well positioned to capture disruptive equity growth
Further Reading

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