Thematic investing is increasingly gaining momentum. Asset managers have noted this trend, highlighting that themes are driving the market more than ever, with investors using ETFs more and more to express their views.
A clear example of this is the boom in the space trade, a theme that has been around for some time but has taken off with the expected initial public offering (IPO) of SpaceX this year.
But telling what will stick around and what is just a fad can be a real challenge, particularly in the current climate with technological innovation accelerating at pace thanks to the boom in artificial intelligence.
Steve Freedman, head of research and sustainability for thematic equities at Pictet Asset Management, said: "Investing in evolving technologies can be rewarding but it is also risky, and distinguishing winners from losers is not straightforward."
Once the noise of short-term cycles is tuned out, the focus should remain on the trends impacting long-term investment opportunities. Pictet Asset Management's 'Ahead 2026' report aims to help with this, identifying seven trends in science, technology and sustainability it expects to shape investment over the coming years.
Performance of funds over 1yr
Source: FE Analytics
The main highlight was cybersecurity. As of today, a hacker infiltration occurs every 39 seconds, with an estimated 3.8 million records stolen through breaches daily, according to figures in the report. As AI increases the volume of personal and professional data being shared, Pictet warned that machines hacking other machines is a growing concern – one it expects to push global cybersecurity spending up by nearly 14% a year.
Another tech trend to watch is robotics. About 619,000 industrial robots are forecast to be installed worldwide this year, up from 575,000 in 2025. Pictet expected that growth would extend to humanoid robots in car factories and data centres and to autonomous vehicles: several new models are due this year, with robotaxis set to debut in London.
Underpinning both trends is a broader AI story. Labour shortages driven by ageing populations are increasing pressure on productivity and Pictet pointed to agentic AI (software that can set goals and execute tasks without human intervention) as one response. The firm says AI code assistants have already made corporate software developers 20-40% more productive, with gains expected across other sectors.
Outside of tech, an ageing population will continue to drive healthcare forward. As the oldest baby boomers turn 80, Pictet expects spending to shift toward prevention rather than treatment, with AI playing a growing role in predicting disease vulnerability, improving screening and accelerating drug discovery. The firm cited research suggesting proactive prevention could give US citizens 15 more healthy years of life.
On energy, the report pointed to progress on storage systems as renewable capacity grows, although intermittency remains a constraint. Lithium-ion battery storage duration is being extended from six to eight hours and hydrogen-based solutions are in development.
Finally, Pictet expected consumer demand for natural and local food, reinforced by GLP-1 weight-loss drugs and tightening regulations on ingredients and labelling to reshape food purchasing. On climate adaptation, it expects capital flowing toward stormwater infrastructure, building retrofits and early flood and wildfire warning systems as extreme weather events become more frequent.