Core Insights - The US is experiencing significant growth in thematic funds, with assets increasing by 50% over three years, capturing 23% of the $779 billion global market as of Q3 2025 [2] - The rise of active ETFs in the US has contributed to this growth, but concerns about the quality and consistency of these funds have been raised [2][3] Thematic Funds Overview - Thematic funds are appealing to investors due to their engaging narratives, such as space exploration, but often come with higher fees that can negatively impact performance [3] - There is a lack of standardization in what constitutes a thematic fund, leading to varying definitions among asset managers [3] Market Dynamics - As of September 30, 2025, there were 332 US thematic funds, with net inflows of $19 billion in the first three quarters, marking the strongest demand since 2021 [5] - Major issuers of thematic funds in the US include First Trust, Global X, BlackRock, ARK, and Kraneshares [5] Historical Context - The Steadman Oceanographic Fund, which focused on underwater life, struggled for 40 years before becoming nearly worthless, contrasting with the more successful Pictet's Water Fund, which targets global water demand [4]