Authored by Suzanne McGee
(Reuters) - Investors are shifting away from exchange-traded funds (ETFs) focused on specific themes like artificial intelligence and video gaming, opting instead for funds tied to broad stock-market benchmarks that are reaching new highs.
This trend of moving towards more general market investments may change if the overall market experiences a downturn.
Although there is a continuous increase in flows into equity ETFs as a whole, thematic ETFs – which concentrate on companies related to various sectors such as solar energy, robotics, and millennial consumers – are seeing outflows for the third year in a row, according to Morningstar, a financial data and analysis company.
This category, with assets totaling $108 billion, has experienced a loss of $5.8 billion in investor capital this year alone. This outflow surpasses the $4.8 billion seen in 2023 for thematic ETFs.
“Thematic ETFs are currently facing challenging times,” stated Taylor Krystkowiak, an investment strategist at Themes ETFs, an asset management firm specializing in this area.
2024-10-22 00:03:35
Originally published on finance.yahoo.com