Investors are moving away from thematic ETFs and towards broad stock-market benchmarks

From Yahoo Finance: 2024-10-22 01:03:35

Investors are moving away from thematic ETFs towards broad stock-market benchmarks that are reaching record highs. Thematic ETFs are experiencing their third year of net outflows, losing $5.8 billion in investor capital this year. The S&P 500 and Nasdaq 100 ETFs have seen $170 billion in inflows this year. Investors often mistime thematic investing, missing out on two-thirds of returns in a five-year period. ARK Innovation ETF, focused on disruptive innovation, has seen the most outflows this year among thematic ETFs. Thematic ETFs’ higher fees can diminish their appeal to investors.



Read more at Yahoo Finance: Analysis-Investors flee thematic ETFs as stock benchmarks soar