What’s the difference between sector investing and thematic investing?

Conventional sector investing is investing in an industry or sector of the economy, for example, real estate or renewable energy. Thematic investing, in contrast, is investing in one topic, however, across several industries. Let’s take healthcare innovation, for example. Healthcare innovation, as a theme, has been adopted across various industries, such as biotech, genomics, medical devices, and many more. And this industry-wide spread approach, known as thematic investing, gives you a much greater diversification compared to sector investing.