Themes, like fashion trends, can fade away from markets

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Investors love thematic ETFs, which help them gain access to new trends and emerging sectors, but many themes struggle to stand the test of time.

P 500 which provide investors with a broad exposure to the share market.

According to senior financial planner Scott Keeley, of Wakefield Partners, thematic ETFs have become increasingly popular. “Younger clients love that they can simply get access to sectors such as e-sports, online shopping and cybersecurity, and more ESG-focused investors have so many options to steer their portfolio in a way that better aligns with their personal values and philosophies,” says Keeley.

“Thematic fund flows have fizzled in the past 12 months. At the end of April 2021, trailing 12-month flows into this universe peaked at nearly $US242 billion. As of the end of April 2022, that figured had declined more than 75 per cent. Global trailing 12-month inflows into thematic funds registered at $US59 billion at the end of this April,” he says.

Source: Entertainment Trends (entertainmenttrends.net)

 

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