Themes Natural Monopoly ETF

The Themes Natural Monopoly ETF (CZAR) tracks the Solactive Natural Monopoly Index, which picks the five top-ranked large and mid-sized developed-market companies in each sector, using financial measures such as profitability and how steady it has been. Within a sector, picks are equally weighted, so company size doesn't drive position size. It charges 0.35% a year and had only about $1.6 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, CZAR returned +1.7%, 7th of 7 among similar funds.
• Its worst full calendar year was 2024 (+10.9%); its best was 2025 (+13.3%).
• The deepest fall in its price history was 13.4% (Feb 19, 2025 to Apr 8, 2025), recovered by May 13, 2025.

As of Jun 30, 2026, the fund held 98 securities; the ten largest made up 40.04% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.77%, -0.31%, -1.85%.

CZAR is an index fund that tracks the Solactive Natural Monopoly Index. Solactive AG, independent of the adviser, Themes Management Company, LLC, runs the index. The starting pool is the Solactive GBS Developed Markets Large & Mid Cap USD Index, covering large and mid-sized companies in developed markets such as the US, UK, Japan and Australia. Thinly traded stocks are dropped.

Solactive ranks the rest, using its own formula, on seven financial measures: sales, profit margin, return on equity (profit relative to shareholders' money), how steady both have been over three years, inventory relative to total assets, and intangible assets, such as patents and brands, relative to total assets. The top five per sector make the cut. Each sector keeps its market-value weight from the screened pool, split equally among its picks. The rules don't check for actual monopolies. As of December 31, 2025, the index held 96 companies.

Stocks are chosen on the last business day of June and December, and the index rebalances seven business days later. The fund generally holds every index stock in about the same proportions, sometimes through ADRs or GDRs, receipts that stand in for foreign shares. The prospectus puts turnover, the share of holdings replaced in a year, at 84%, high for an index fund and a source of extra trading costs.

• CZAR charges 0.35% a year, versus an average of 0.29% for the similar funds below (5th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).

It is a rules-based global stock fund with under three years of history and only about $1.6 million in assets as of June 30, 2026, which fits a small side position better than a portfolio's core.

CZAR launched on December 13, 2023, so it has no record from the 2008, 2020 or 2022 downturns. Its worst full calendar year, 2024, was still an 11.23% gain. Its deepest drop, 13.4% from February 19 to April 8, 2025, was recovered by May 13, 2025. That record is short and untested by a long bear market, when anyone selling shares for spending money would be selling low.

Its dividend is paid once a year, and the yield based on the past 12 months of payouts was 1.42% as of October 27, 2026, so it offers little regular income. Its 0.35% annual expense ratio is a little above the 0.29% average of the funds compared; the SEC's standard example puts that at $36 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).