ETF news: beware of theme funds

Photomontage theme fund

Investors often pay a high price for supposed future trends.

(Photo: Imago, Getty Images [M])

Frankfurt Trending topics such as renewable energies, blockchain or sports betting are attracting more and more investors. In Europe, the assets of actively and passively managed equity funds with a thematic focus have quadrupled in four years: from 72 to over 283 billion euros. This emerges from a study by the consulting firm Cerulli Associates, which is available exclusively to the Handelsblatt.

However, investors often pay a high price for the supposed future trends. Those who focus on topics such as blockchain and cloud computing have lost more than 30 percent so far this year. Cryptocurrency products fell more than half. Even in the long term, the balance sheet of theme funds is bad, as figures from the fund research company Morningstar show.

The timing of their investments is often problematic for investors. Find out below why you make a triple bet with theme funds – and often lose.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

source site-11