What is a thematic portfolio?

A. A portfolio based on a specific long-term trend or idea

How can investors reduce risk in a thematic portfolio?

B. Diversify across multiple companies within the theme

What is the main goal of a thematic portfolio?

C. Capitalize on a long-term trend

Which of the following is an example of a thematic investment?

C. Investing in clean energy companies

Which of the following is a common risk of thematic investing?

C. The theme may lose relevance

What type of investor might be most interested in a thematic portfolio?

B. Someone interested in trends like AI or sustainability

What is a potential reward of thematic investing?

C. Early exposure to emerging industries

Thematic ETFs are popular because they:

B. Track a specific theme and offer diversification

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Thematic Portfolio

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Questions 10

Answers

1
What is a thematic portfolio?
B. A portfolio that only includes government bonds
D. A portfolio selected randomly
C. A portfolio that avoids all risk
A. A portfolio based on a specific long-term trend or idea
2
How can investors reduce risk in a thematic portfolio?
C. Avoid rebalancing
A. Only invest in one stock
D. Ignore market changes
B. Diversify across multiple companies within the theme
3
Which of these is a thematic trend?
B. Aging global population
A. Interest rate hikes
C. Stock market volatility
D. Currency fluctuations
4
What is the main goal of a thematic portfolio?
B. Avoid taxes
D. Match the performance of the S&P 500
A. Preserve capital
C. Capitalize on a long-term trend
5
Which of these is NOT a good example of a thematic portfolio?
A. Clean energy stocks
C. Dividend aristocrats
D. Artificial intelligence firms
B. Cybersecurity companies
6
Which of the following is an example of a thematic investment?
D. Investing in penny stocks
A. Investing in all sectors equally
B. Buying only U.S. Treasury Bonds
C. Investing in clean energy companies
7
Which of the following is a common risk of thematic investing?
C. The theme may lose relevance
D. High bond yields
B. Over-diversification
A. Lack of focus
8
What type of investor might be most interested in a thematic portfolio?
B. Someone interested in trends like AI or sustainability
C. Someone who only invests in bonds
D. Someone avoiding all new industries
A. Someone looking for maximum safety
9
What is a potential reward of thematic investing?
D. Protection from inflation
B. Fast tax write-offs
A. Guaranteed returns
C. Early exposure to emerging industries
10
Thematic ETFs are popular because they:
B. Track a specific theme and offer diversification
A. Only include cash assets
C. Are risk-free investments
D. Avoid market trends

Thematic Portfolio Flashcards | StudBud