Monthly UCITS Thematic ETF Commentary

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The Global X Team is pleased to release the December 2025 edition of the UCITS Thematic ETF Commentary. This commentary recaps Global X’s classification system for disruptive themes and the thematic ETFs that aim to track them. It also provides industry-level insights into thematic investing ETFs, looking at new launches and closures, changes in assets under management (AUM), and fund flows.

Click here to download the UCITS Thematic ETF Commentary December 2025

UCITS Thematic ETF Landscape – December 2025 Recap¹

At the end of December 2025, UCITS thematic ETFs represented 2.34% of the UCITS ETF industry’s $2.91 trillion total AUM.² This is the same as the 2.34% level reached at the end of November 2025.³

UCITS Thematic ETF AUM increased to $68.2 billion this month, up 2.1% from November’s AUM of $66.8 billion.⁴ In comparison, AUM in the broader UCITS ETF industry increased 2.0% month-over-month (MoM).⁵

AUM for UCITS Thematic ETFs saw an overall increase of $1.43 billion, with net inflows of $431.7 million.⁶ Market performance added $1.00 billion in AUM.⁷

On a year-over-year basis, UCITS Thematic ETF AUM increased +79.2% from $38.0 billion at the end of December 2025.⁸

There are currently 180 UCITS thematic ETFs,⁹ with two new listings in December.

Themes related to Disruptive Technology saw an increase in AUM of $1.1 billion.¹⁰ This was followed by the Physical Environment category, which saw a $388 million increase in AUM, and the People & Demographics category, which saw a $11.2 million increase in AUM. ¹¹,¹²

At the Mega-Theme level, Connectivity saw the largest net inflows in December, with +$94.9 million.¹³ The Big Data Mega-Theme saw the largest net outflows with -$130.4 million.¹⁴

At the thematic level, Machine/Deep Learning (+$223.1 million) exhibited the largest increase in AUM, followed by Space/Satellite Communications (+$136.3 million) and 5G & Internet of Things (+$59.1 million).¹⁵

Global X’s Thematic Classification System

The Global X team has established a thematic classification system that seeks to provide a consistent framework for identifying disruptive themes and categorising the thematic ETF space. Often, conflicting definitions of thematic investing have been seen in the media and financial world, which can lead to confusion about which ETFs are thematic and what themes they are tracking.¹⁶ With the introduction of this classification system, it is hoped that more clarity around disruptive themes and their related ETFs may be provided.

Defining Thematic Investing

Thematic investing can be defined as the process of identifying powerful disruptive macro-level trends and the underlying investments that potentially stand to benefit from the materialisation of those trends.¹⁷

By nature, thematic investing is a long term, growth-oriented strategy, that is typically unconstrained geographically or by traditional sector/industry classifications, can have low correlation to other growth strategies, and invests in relatable concepts.¹⁸

Notably, thematic investing does not consist of ESG, values-based, or policy-driven strategies, unless they otherwise represent a disruptive structural trend (e.g., climate change).¹⁹

Classifying Themes

Global X’s thematic classification system consists of four layers of classifications: 1) Categories; 2) Mega-Themes; 3) Themes; and 4) Sub-Themes, with each layer becoming sequentially narrower in its focus.

‘Categories’ is the broadest layer and represents three potentially fundamental drivers of disruption: exponential advancements in technology (Disruptive Technology), changing consumer habits and demographics (People & Demographics), and the evolving physical landscape (Physical Environment).

One layer down is ‘Mega-Themes’ and these serve as a foundation to multiple potentially transformative forces that appear to be causing substantial changes in a common area. Conceptually, Mega-Themes are a collection of more narrowly targeted Themes. For example, Big Data is a Mega-Theme that consists of themes such as Machine/Deep Learning, Cybersecurity, Quantum Computing, and Cloud/Edge Computing.²⁰

Themes are identified as the specific areas of transformational disruption that appear to be driving technology forward, changing consumer demands, or impacting the environment. There are currently 40 themes in the classification system.

‘Sub-Themes’ are more niche areas, such as specific applications of themes or upstream forces that appear to be driving themes forward. For example, Remote Work is a sub-theme of Cloud/Edge Computing.²¹

Thematic ETFs aim to target a specific category, mega-theme, theme, or sub-theme. The classification system seeks to find the best potential fit for a specific ETF, assessing its methodology, holdings, and stated objectives. The thematic classification system is reviewed monthly to consider new potential categories, mega-themes, themes, or sub-themes. As a new ETF launches or changes its strategy, its classification is evaluated immediately.

This document is not intended to be, or does not constitute, investment research as defined by the Financial Conduct Authority.