At OPTO, we’ve redefined how you discover investment opportunities. Our AI-powered thematic taxonomy categorizes US-listed stocks and ETFs based on long-term global trends, providing a forward-looking perspective that goes beyond traditional industry classification. Here’s how it works:

We start top-down, identifying trends that demonstrate sustained growth. To qualify, themes must have a current market value of at least $1 billion and a projected growth trajectory exceeding $2.5 billion. This ensures our users navigate a diverse landscape of secular, not cyclical, investment trends.

The investment landscape is constantly evolving, and so is our thematic taxonomy. Each month, we review and evaluate existing and potential themes to ensure our classifications remain relevant. This dynamic process allows us to introduce new themes, refine existing ones, and retire those no longer impactful.

Next, we classify Stocks & ETFs according to the themes they relate to. Central to this process is the concept of primary thematic exposure. We identify a maximum of two themes that best capture the essence of a company’s value proposition and growth potential. For example, Tesla is categorized under the ‘Electric Vehicles’ theme due to its significant presence in this industry, despite being traditionally classified under ‘Automobiles’. Similarly, Coinbase falls under the ‘Blockchain’ theme, reflecting its core role in the cryptocurrency ecosystem. Similarly for ETFs, we apply the ‘majority rules’ principle, where the theme generating the most revenue and earnings amongst the fund’s holdings, determine its primary thematic exposure.

Through the power of AI, our proprietary classification model leverages a combination of data sources to determine an investment’s primary thematic exposure. That assessment generates a ‘Relevance Score’, based on four main criteria:

A composite score based on those 4 criteria is calculated for each stock, against each theme. A maximum of two themes is assigned to each stock, if it scores above the targeted threshold.

OPTO’s thematic taxonomy offers a dynamic, forward-looking approach to categorizing investments. By focusing on primary thematic exposure, we empower you to identify opportunities aligned with long-term trends, helping you capitalize on the megatrends shaping the future. Our methodology is continually refined to remain a valuable tool for navigating the ever-evolving investment landscape.

We have categorised US stocks and ETFs to correlate with themes that we believe are shaping our future.

Our themes should not be seen as investment advice and any information provided in the app is for informational purposes only. OPTO Markets LLC does not recommend any specific securities or investment strategies. Investing involves risk & investments may lose value, including the loss of principal. Past performance does not guarantee future results. Investors should consider their investment objectives and risks carefully before investing.

OPTO Markets LLC is not a broker-dealer, investment adviser, or member of FINRA. Securities offered by Alpaca Securities LLC (“Alpaca Securities”). Alpaca Securities does not provide the technology and is not responsible for, the features and services you receive from the Opto platform. Alpaca Securities is a member of FINRA and the Securities Investor Protection Corporation. Pursuant to FINRA Rule 4311, Alpaca Securities and Opto and have entered into an agreement where Alpaca provides clearing services for the Opto platform. For further information, please refer to the Alpaca Disclosure Library.