This actively managed ETF does not track a specific benchmark. Instead, it actively rotates into U.S. equity themes that it believes have above-average earnings growth potential.

It suits investors who want the possibility of excess returns from active stock and theme selection rather than tracking a particular index.

It is an ETF managed with an active (actively run) approach by iShares.

The fund invests a substantial portion of its net assets in U.S. stocks judged to have above-average earnings growth potential, and it actively adjusts its weighting of structural and cyclical themes, centered on large-cap tech stocks. It is a non-diversified strategy that selects stocks based on its own judgment, without tracking a specific benchmark.

• Data-driven thematic rotation approach
• Simultaneous exposure to Big Tech and emerging growth themes

Assets under management (AUM) are $7.5B, and the total expense ratio (Expense Ratio) is 0.57% per year.

The DYNF ETF, which uses a factor rotation approach, and the ARKK ETF, which concentrates on innovation themes, take a different approach from this ETF's broad thematic rotation.

Returns tend to fluctuate significantly depending on large-cap tech earnings and the thematic rotation cycle, and the gap between outperformance and underperformance relative to benchmark indexes is relatively wide.

Fund flows continue amid investor interest in active thematic strategies, and during market regime shifts, adjustments to theme weightings may affect those flows.

Its strength is the potential for excess returns from actively discovering themes, while higher tracking error versus a given index and a relatively high expense ratio are points to watch.

The DYNF ETF shown alongside it in the table is an active ETF that uses factor rotation and shares a similar active management philosophy with this ETF. The ARKK ETF is an active ETF that concentrates more on innovation themes, the JMEE ETF is an active strategy centered on small and mid-cap stocks, and the XOVR ETF focuses on a private-public crossover theme, so each has a different investment universe. For additional large-cap tech exposure, a sector ETF such as XLK may be worth comparing, and for exposure to the Nasdaq 100 Index itself, QQQ is another comparison candidate.

Here are the points to review before investing in THRO. Because this is an active thematic strategy rather than an index-tracking one, it is important to carefully check costs, concentration, and management risk in advance.

Tracking error from the non-diversified structure and active theme adjustments is the main source of short-term volatility. In periods when the fund's theme calls prove wrong, it may lag passive index ETFs.

It is a suitable option for investors who want excess returns from active theme discovery rather than tracking a specific index. Investors are advised to pay attention to the expense ratio and concentration and to compare it with passive alternatives.