Thematic Investing: Trade on the world’s hottest megatrends with Capital.com


In times of unprecedented markets’ volatility, driven by the coronavirus pandemic, the great lockdown, oil-price war and threat of the global recession, thematic investing could be a smart way to spot the best investment opportunities.

August 6, 2020 | Capital.com – Observing the roller-coaster price swings within different markets, it may be hard to keep up with major drivers, affecting the price movements of particular assets. Capital.com trading platform decided to facilitate this challenge and offer a bunch of dedicated thematic indices, including the Oil Price Index, Crypto index, Corona anti-virus index, US Cannabis index, and US Airlines index, which track the performance of the most popular assets within the top-traded markets.

Oil Portfolio Index

In April 2020 we witnessed an unbelievable collapse of the oil price. The major international oil benchmark – West Texas Intermediate (WTI) – has plunged to a negative territory of minus $40 per barrel amid the deepest fall in oil demand in 25 years.

According to the latest oil price news, oil market volatility is in full swing. It may take time until the virus will be a page in history and the demand for oil would return to normal. The prices change so quickly that no one wants to be on the wrong side of the market’s move.

This volatile environment significantly affects oil stocks, putting them under pressure. However, they still provide some attractive trading opportunities. To make it easier for traders to benefit from the oil market’s volatility, Capital.com offers the Oil Price Index, which consists of the 8 leading US Energy stocks, including Chevron (CVX), Exxon Mobil (XOM), ConocoPhillips (COP), Occidental Petroleum (OXY), Canadian Natural Resource Ltd (CNQ), Apache (APA), Noble Energy Inc (NBL) and Whiting Petroleum (WLL). The index serves as the market sentiment indicator towards US Oil market growth.

Thematic Indices

Crypto index

During the unstable economic environment, fevering markets, and trembling fiat currencies’ price rates, cryptocurrencies are seen by many as a new safe haven. The Crypto index, offering the opportunity to trade a basket of cryptocurrencies, rather than multiple individual cryptocurrencies, provides several benefits.

First, it is a more cost-efficient way of crypto trade, as it gives you a wider view of the sector as a whole, without the need to open numerous positions on each coin separately. Second, trading the crypto index enables you to spread the risk without being exposed to a single coin fluctuation.

The crypto index (CRY) consists of the five leading cryptocurrencies in terms of market capitalization. These include Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin. They are grouped together and weighted by market capitalization.

When the value of a particular cryptocurrency within the index moves up, its market cap also grows. This raises the value of the crypto index. Conversely, when the crypto price goes down against the USD, the value of the crypto index falls.

The Corona anti-virus index

Pharma stocks are gaining popularity as the healthcare companies around the world are struggling to find a solution and the best treatment against Covid-19. The Corona anti-virus index consists of the five leading companies, which conduct research on coronavirus treatment and show positive progress so far. They include Johnson & Johnson, Sanofi, Gilead Sciences Inc, GlaxoSmithSciences Inc, and Inovio Pharmaceuticals. The index serves as a market sentiment indicator towards the treatment progress.

The US Cannabis index

As people stay home during the Covid-19 lockdown, the demand for medical marijuana has surged. The Canadian government has classified cannabis as essential to relieve stress during the pandemic. It means that Cannabis stocks may bring traders outstanding opportunities, and the index can help to catch them. The US Cannabis index consists of the key players in the US Cannabis industry, including GW Pharmaceuticals PLC Sponsored ADR (GWPH), Innovative Industrial Properties Inc (IIPR), Tilray Inc (TLRY), Cronos Group Inc (CRON) and Corbus Pharmaceuticals Holdings Inc (CRBP).

US Airlines Index

With travel demand down 90 percent YoY, the airline crisis continues with grounding planes and slashing flights. Still, Airline stocks draw traders’ attention and the US Airlines Index can also bring some attractive trading opportunities. It consists of six leading American airline companies including Southwest Airlines (LUV), Alaska Airlines (ALK), United Airlines (UAL), Delta Air Lines (DAL), American Airlines (AAL), and JetBlue (JBLU).

The bottom line: trade smart with thematic investing

Capital.com is an award-winning CFD trading platform, designed to make the world of investments simpler and accessible. With the vision of building an advanced yet user-friendly financial platform, it offers professionals and novices alike from all around the world an ultimate trading experience. Thematic investing with Capital.com could be a smart way for you to spot the best investment opportunities. At present, there are CFDs on 2,400+ instruments available to choose from.

The good thing is that with contracts for difference, you speculate on the direction of the underlying asset without actually owning it. You can either take a long or short position, depending on whether you expect the price of an asset to rise or fall. This gives the opportunity to profit from both negative and positive market fluctuations. Trading has never been easier. Whether you need a simple or more sophisticated approach with thematic investing, Capital.com has all the right things.

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