The exchange-traded fund (ETF) universe has undergone explosive growth since the first prototype fund was launched in 1990. But within this broad category, there is a niche segment that has gained a lot of traction in recent years. I'm talking about thematic ETFs, which focus on specific themes or sectors that are expected to benefit from long-term trends.

Some examples of these themes are artificial intelligence (AI), semiconductors, and advanced medical devices. Many individual stocks and ETFs based on these specific themes have dramatically outperformed the overall market over the past 10 years.

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Source Fool.com