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Tema Trends: Exploring Monopoly, Luxury ETFs and Reshoring Insights

Yuri Khodjamirian, CFA
By Yuri Khodjamirian, CFA
CIO
September 22, 2023
 

In this edition of Tema Trends we:

  • Ask ourselves whether the rapidly evolving technology sector has the potential to create enduring monopolies, by assessing the five key sources of monopolistic power.
  • Dive into our latest earnings insight report: reshoring, which provides an exclusive first look at what the latest management earnings call revealed about companies leading the way in American Reshoring.
  • Shine a spotlight on the LUX ETF, an innovative investment opportunity that is opening new avenues for investors to access the luxury sector.

The Competitive Techscape: Dispelling the Monopoly Narrative 

Can the technology sector generate enduring monopolies? While network effects and high switching costs can contribute to monopoly power, the tech sector's propensity for disruption, dynamic venture landscape, and regulatory challenges cast doubt on the possibility of enduring monopolies. However, the presence of non-replicable physical assets, such as specialized services and unique manufacturing capabilities, provides a potential avenue for establishing lasting monopolies within technology. Overall, our analysis suggests that traditional sources of monopoly may not be as strong in the tech industry as previously believed. LEARN MORE

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Giving US Investors Access to Hard-to-Access Luxury Stocks

Over the past decade, technological advancements have significantly enhanced the ability of individual investors to engage in the stock market, largely thanks to platforms like Robinhood and Public, which offer accessible and cost-effective trading options. However, most of these trading apps still impose restrictions on trading stocks of companies to those exclusively listed on US stock exchanges. This limitation poses a challenge for international companies. While some, like Ferrari, have direct US listings, and others, such as Alibaba, rely on special US listings like sponsored ADRs (American Depository Receipts), a substantial number of globally significant firms like LVMH (France), Aramco (Saudi Arabia), Samsung (South Korea), and Reliance (India) lack these arrangements, rendering them inaccessible on many US trading platforms.

Discover how the Tema LUX ETF is revolutionizing access to international luxury stocks for American investors, breaking down barriers in the world of luxury investing. LEARN MORE