Themes US R&D Champions ETF

Themes US R&D Champions ETF (USRD) tracks the Solactive US R&D Champions Index. The index holds 50 profitable large and mid-size US companies whose research and development (R&D) spending is high relative to sales and profits and has risen three years running. Its 0.29% expense ratio beats the 0.39% average for similar funds. But as of June 30, 2026, about 62% of the portfolio was in technology and the fund held only about $1.1 million.

• Over the year to Oct 27, 2026, USRD returned +6.3%, 6th of 9 among similar funds.
• Its worst full calendar year was 2025 (+12.4%); its best was 2024 (+15.5%).
• The deepest fall in its price history was 23.8% (Dec 4, 2024 to Apr 8, 2025), recovered by Jun 26, 2025.

As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 29.92% 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: +11.37%, +12.59%, -2.53%.

USRD is an index fund. It tries to match the Solactive US R&D Champions Index before fees, not beat it, and it doesn't move to cash when markets fall. Solactive AG is independent of the fund's adviser, Themes Management Company, LLC. It starts with its own index of large and mid-size US companies, which covers about 85% of the US market's value in freely traded shares.

To qualify, a company needs three straight years of rising research and development (R&D) spending. In each of those years, it also needs a positive profit margin and positive returns on equity and on assets (profit relative to shareholders' money and to total assets). The 50 companies with the highest R&D spending as a share of sales and net income make the index. Stocks are picked on the last business day of January, April, July and October, and the rebalance follows seven business days later.

The fund generally holds every stock in the index in about the index's proportions. It may hold only a sample when that is cheaper or more practical. As of June 30, 2026, the largest holding, Datadog, was about 3.6% of assets, and the top 10 made up about 30%. Turnover, roughly the share of the portfolio replaced in a year, was 56%. That trading has costs the expense ratio doesn't include. The fund is legally “non-diversified,” so it may concentrate in fewer companies.

• USRD charges 0.29% a year, versus an average of 0.39% for the similar funds below (3rd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $368 over 10 years (assuming a 5% annual return).

With about 62% in technology stocks as of June 30, 2026, only 50 holdings and a record starting in December 2023, it works more as a concentrated add-on than as a portfolio foundation.

USRD could add a tilt toward profitable companies that invest heavily in research and development. It costs 0.29% a year. Under the SEC's standard example, that comes to about $30 in the first year and $368 over 10 years on $10,000. It launched December 13, 2023, so it did not exist during the 2008, 2020 or 2022 downturns. Both full calendar years were positive (15.61% in 2024, 12.3% in 2025). But its deepest drop was 23.8%, from December 4, 2024, to April 8, 2025, and it recovered by June 26, 2025.

A retiree forced to sell near the April 2025 low would have locked in that loss, despite the quick rebound. Income is minimal: the yield was 0.38% as of October 27, 2026, paid once a year. Past results don't predict future ones, and any plan needs to weigh the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.