Investing In Mega trends – My ETF Picks!

Introduction to Mega Trends

There are certain trends that will shape the world over the next couple of decades. These are called mega trends. Mega trends are powerful, transformational, and long-term changes and forces that will affect us globally. Think of things like artificial intelligence (AI), infrastructure, renewable energy transition, healthcare, cybersecurity, and geopolitics. Investing in mega trends can help you profit off of these unstoppable trends.

BlackRock has a great website that talks about what they consider to be mega trends, as does PwC here.

I recently had the opportunity to co-host the Dividend Talk podcast with my friend Derek where we talked about mega trends and which dividend companies / ETFs we felt were good plays to follow various trends. Check it out on Apple Podcasts and Spotify if you haven’t. I also did a YouTube video on my channel last year going in depth on the topic as well.

During these discussions there were many individual companies to consider, and I have many including Brookfield Asset Management, Brookfield Infrastructure, Clearway Energy, Brookfield Renewable, GE Vernova, etc., but sometimes it is hard to pick specific companies, so I wanted to share some of the ETFs I am using to get broad exposure to the mega trends I think are the most important for me.

My Mega Trend ETF Picks!

Here are the ETFs I own as of today broken down into three mega trends:

Renewable Energy Transition:

1. IBAT – iShares Energy Storage & Materials ETF (invests in batteries and related technology to store energy)
2. TMET – iShares Transition-Enabling Metals ETF (invests in the metals that are needed for the renewable energy transition)
3. LCTD – BlackRock World ex-US Carbon Transition Readiness ETF (broad international exposure to companies on the forefront of the carbon transition)
4. GRID – First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (invests in companies building technologies that will help transform our power grid with smart technologies)
5. TBLU – Tortoise Global Water Fund (probably the most important trend, this ETF invests in companies building out our water infrastructure to continue to provide necessary water supplies to our cities and agriculture)

Infrastructure:

1. EFRA – iShares Environmental Infrastructure and Industry ETF (focuses on companies building out sustainable infrastructure around the globe)
2. IFRA – iShares US Infrastructure ETF (US specific infrastructure related companies)
3. IGF – iShares Global Infrastructure ETF (Global infrastructure play)

Technology:

1. IHAK – iShares Cybersecurity and Tech ETF (invest in companies creating a safe environment for our technology)
2. TCAI – Tortoise AI Infrastructure ETF (a brand new fund that focuses on the companies that allow AI to exist – think computer and network hardware, water cooling systems, data centers, and utilities)

I am continuing to look for more additions to my mega trends allocation, most likely looking to add 1 or 2 more to the technology or infrastructure trends.

What is your favorite mega trend to invest in and which ETFs are you holding for it? Let me know in the comments or reach out to me at Jeremy@Dividendstockpile.com.

Wrap Up

Mega trends are going to change the world in which we live. As investors looking into the future, it is important to stay aware, and if appropriate for your risk tolerance and timeline, investing in mega trends like these for our future.

Thanks for stopping by, and remember, keep stockpiling those dividends!

Jeremy