Thematic indices

A thematic index is an instrument that tracks the performance of a group of companies that all belong to a particular investment theme. These could be based on sectors or certain performance metrics – such as growth.

A thematic index creates the opportunity for traders to get exposure to a number of companies from a single position, taking advantage of ‘trends’ within the economy at large.

With FOREX.com, you can trade thematic indices on:

• AI
• FAANG+
• Remote working economy
• ESG
• Green

Learn more about indices trading.

Thematic indices work in much the same way as most stock indices, creating an index value by combining either the market capitalisations or the share price values of all the constituents and dividing it by that day’s divisor.

Each index will have its own methodology to identify companies that belong on the list. The most common is a ‘relevance score’ which assesses how much of the company’s revenue is generated from the business segment. For example, a green energy stock will need to make the majority of its income from renewable energy sources.

Learn more about how indices work.