In the Margins

Thematic ETFs: Gimmick or smart strategy?

April 19, 2017

By MarketWatch

Fund issuers have been looking for ways to tap into the market for exchange-traded funds, and as a result, the market has been flooded by new “thematic” ETFs, which track a narrow sliver of the equity market, focusing on a specific sub-sector of a broader industry. In the past year alone, funds dedicated to wearable technology, medical marijuana, health and fitness, 3D printing, the Internet of Things, and mobile payment—among many others—have all been launched. "The problem investors have isn’t that there aren’t enough products, it’s that the products aren’t good. You don’t create 40 solutions by launching 40 funds; you just create new questions about how or if they should be used,” said Kevin Quigg, chief strategist at ACSI Funds. Read the original story from MarketWatch.



Most Read

Top of the Agenda - Governance
Directors: Focus on prospectus for ESG funds

Environmental, social, and governance investing has been a huge topic of discussion in the mutual fund industry over the past several years, including in fund boardrooms. ...