Host Mike Wallberg, CFA, interviews Javier Gonzalez Lastra, CFA, a portfolio manager at Tema ETFs, about the investment potential of the luxury goods sector. Javier explains that while the luxury goods market is fragmented, companies like LVMH have managed to build large conglomerates. He discusses the reasons why his team at Tema decided to launch a luxury ETF, pointing to demographic trends like the growing purchasing power of females in the workforce and the rise of the middle class in Asia. Javier also touches on the pricing power of luxury goods, which is driven by their desirability and negative price elasticity.