ETF Boom Leaves Thematic Funds Behind

The video discusses thematic ETFs, their rise since 2016, and their performance compared to the S&P 500. It explores the reasons behind their popularity, the impact of higher fees, and the future outlook for these funds. Analysts expect thematic ETFs to gain traction if the broader market sees modest gains. The video also examines whether these funds are created due to investor demand or as a strategy by fund managers. Finally, it highlights the role of ETFs in providing access to entire industries, despite varying levels of enthusiasm.

What was the peak asset value of thematic ETFs in 2019?

• $51 billion

• $10 billion

• $4 trillion

• $100 billion

Why might investors prefer broader market indices over thematic ETFs?

• Limited availability

• Higher fees and niche focus

• Lack of diversity

• Higher risk

What return did the S&P 500 provide to investors in 2019?

• 10%

• 50%

• 15%

• 29%

What is a potential reason for creating thematic funds?

• To reduce market volatility

• To simplify investment strategies

• To meet investor demand and distinguish fund managers

• To lower investment costs

What is the concept behind a global thematic ETF?

• Combining all thematic funds under one umbrella

• Focusing on a single industry

• Tracking only the S&P 500

• Offering the lowest fees in the market