WisdomTree's thematic strategy seeks to identify megatrends before they become mainstream investment opportunities. Mobeen Tahir, the firm’s thematic strategist, discusses AI, quantum computing, the space economy and the growing demand for energy and strategic materials. He explains how WisdomTree spots emerging themes and builds targeted investment strategies beyond traditional market-cap-weighted portfolios.

Interview by York Runne

You have been with WisdomTree for almost eight years. What is your role in identifying the next big investment themes?

Mobeen Tahir: I joined in December 2018. WisdomTree has evolved considerably, while retaining its founding philosophy: offering investors differentiated solutions rather than simply replicating traditional market indices.

As thematic strategist, I connect developments in technology, society and the economy with potential investment opportunities. When I joined, WisdomTree had just launched its first thematic ETF on Artificial Intelligence. We have since built a range of strategies across 20 themes, with the challenge being to identify trends that could become economically significant and turn them into investable solutions.

AI has dominated markets, amid concerns about valuations and the cost of infrastructure. Where are we in the investment cycle?

We remain constructive on AI’s long-term outlook, although the technology will inevitably go through cycles of enthusiasm and correction.

Think of the development of the mobile internet: the iPhone arrived in 2007, the App Store followed in 2008, and Instagram emerged in 2010. Each relied on infrastructure built earlier. AI is at a similar stage today, with major investment going into chips, data centres and computing infrastructure. These foundations will enable the next generation of applications.

AI could transform drug discovery, materials science, automotive engineering and space exploration. Some of the most important applications may not yet exist.

Does that mean tomorrow’s AI winners may not be the companies leading the market today?

Exactly. Some winners will be established companies, but others may not exist yet. Instagram was not around when the iPhone launched, despite the infrastructure already being developed.

The returns on today’s AI investment will not necessarily come only from chipmakers and current AI developers. New businesses and applications may emerge as the technology develops. The challenge for thematic investors is to identify those opportunities early.

How does WisdomTree identify the next major theme before it becomes obvious to the market?

We look for technologies and structural changes that could have a significant economic impact. That means tracking developments across industries, assessing where breakthroughs may be approaching and determining whether an emerging trend offers a viable investment opportunity.

Quantum computing is a good example. We entered the theme in 2025, as investors began to recognise that technologies beyond AI could also reach a transformative breakthrough. Our role is to identify the theme, assess the investable universe and build targeted exposure.

What makes quantum computing particularly interesting?

A major breakthrough could change how problems are solved across multiple industries. It remains an emerging field, but the investment universe is expanding as new companies enter the market and established technology businesses develop quantum capabilities.

The timing and commercial impact of a breakthrough remain uncertain. That uncertainty is part of the challenge—and the opportunity—of thematic investing.

Is space becoming a genuine investment theme rather than simply a story about exploration?

Absolutely. Space is increasingly becoming an economic ecosystem, not just a government-led exploration programme. Technological progress is opening up commercial possibilities, and SpaceX illustrates how businesses in the sector are developing more commercially viable models.

Space also connects with other themes. AI can help design rockets, improve engineering and analyse complex data, while advances in computing and materials science could support further innovation.

Could the biggest economic impact come from the way AI, quantum computing and space reinforce one another?

Yes. AI can accelerate innovation in engineering, materials science, drug discovery and space technology. Quantum computing could eventually offer new capabilities in areas where conventional computing faces limitations.

These technologies will develop at different speeds, but their interaction could create opportunities that are difficult to see when each sector is considered in isolation. We need to keep reassessing the landscape as themes intersect and evolve.

AI requires enormous amounts of electricity. How important is the relationship between AI and energy to your outlook?

It is becoming increasingly important. Expanding AI infrastructure requires substantial amounts of energy, while electrification is driving demand for reliable power across the economy.

This creates opportunities in nuclear power, renewables, batteries and electricity infrastructure. Some of these themes performed very strongly last year and have since pulled back. Higher interest rates can weigh on capital-intensive sectors, and politics also affects investment. But a short-term correction does not necessarily undermine the long-term case.

Could nuclear energy become one of the defining investment themes of the coming decade?

Nuclear is increasingly seen as a reliable source of electricity that can operate around the clock without direct carbon emissions during generation. That makes it relevant as power demand rises and energy security becomes more important.

Attitudes towards nuclear are changing, and small modular reactors are worth watching because they may offer different ways to build and deploy capacity. Their commercial scalability and economics still need to be demonstrated, while China’s construction programme shows how scale and standardisation could shape the sector.

Copper is another strategic material you highlight. Why does it matter?

Copper is fundamental to electrification. It is needed for power networks, electrical infrastructure and many technologies supporting the energy transition.

New copper mines can take around 15 years to develop, so supply cannot respond quickly to rising demand. Tariffs and geopolitics can affect prices in the short term, but the broader question is whether supply can keep up as the world electrifies. We are also seeing more investors consider commodities as strategic portfolio allocations rather than only short-term trades.

How does WisdomTree decide which themes deserve their own investment strategy?

We aim to offer differentiated options rather than simply another market-cap-weighted index. Investors can access markets through factors, income strategies or thematic investments.

For thematic strategies, the purity of exposure matters: we want to include companies genuinely involved in the theme. Geography should reflect the underlying industry. China, for example, has a significant role in renewable energy and battery manufacturing, while many publicly listed AI, cybersecurity and quantum computing companies are based in the United States.

How do you keep investment strategies relevant as technologies evolve?

Identifying a theme is only the beginning; we must also update our strategies as industries change.

Cybersecurity is a good example. It has been an established theme for years, but AI is changing both the threats and the defences. As attacks become AI-powered, cybersecurity must also use AI. Further advances in quantum computing could create new challenges.

A theme that once seemed mature can become relevant again as its drivers change. We continuously review our strategies to keep them aligned with the evolving economy.

What does this approach mean for diversification?

We want to give investors a range of options suited to their objectives. Diversification need not mean simply holding more stocks within the same market exposure; it can also mean accessing different economic drivers and structural trends.