Thematic ETFs (are Terrible Investments)

If you’re excited about an investment, it’s probably not a good investment.

Listen to the Rational Reminder Episode 185: Lighting your Money on Fire with Thematic ETFs where we do a deeper dive of the topic:

Referenced in this video:

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[robinimpey]

What I love about Ben is that his message is simple, consistent and he can continually provide evidence to support his claim! If you've watched one of his videos, or listened to one of his podcasts, you know what the message is!

[TheJuryIsOut]

Ben has the uncanny ability to be able to take just about any investment topic, provide compelling arguments and research and present a very credible paper on the subject. I envy the Canadians having these skills available to tap into.

[DekarNL]

Sticking with my portfolio of 100% iShares core MSCI world ETF. 10 year annualized returns of 12%.

[stillcrazyhaha]

Man, you do insanely thorough work. I work in a wealth management office where the advisors due diligence stocks by reading seeking alpha. Ugh.

[tuams]

I'm still in awe at the things you teach. Would have had no idea about any of this if not for you.

[shuxiongbao]

The more I learn, the less I know. Your knowledge humbled me 🙏

[ventorro]

What about thematic ETF like XUT which focuses on Utilities?

[glenshort]

Ben, I would love to hear your thoughts on how to position portfolios for 2022 specifically in regards to the fixed income side. Many of us are near or in retirement and our “safe” assets are acting like anything but!

[thomas]

Really appreciate your work Ben. Thank you!

[michaelsundercock]

Just a video idea, but I would love to see a video on Covered Call ETFs and/or Income Funds. I know you’ve touched base on financial products with downside protection before (I.e. low volatility ETFs) but given CC ETFs unique characteristics could be interesting.

[soddedberm]

Overall I get the take-home message. However there are a lot of sweeping generalizations in this video. It paints all thematic ETFs with a broad brush, and does not even define or set thresholds on what exactly a thematic ETF is. It also doesn't take into account the fact that some retail investors may have subject matter expertise on a given sector, and therefore have a clearer perspective on that sector's trajectory than generalist fund managers. Further, it ignores the fact that certain investors might have an ethical code of conduct that inhibits their willingness to invest in certain index funds, and which could mean they have portfolio objectives that go beyond strictly maximizing gains (though it's safe to assume that maximizing gains is the goal of a vast majority of investors). Lastly, there's a disproportionate focus on new thematic ETFs, and Ben ignores the fact hat many of them have been around for a decade or more, and have a proven track record of responsible management and growth.

[mftgdeserteagle]

Hi Ben! Could you do a video on your own personnal asset allocation and the rationale behind it? Thank you.

[p.c.h.]

Thanks Ben, Cathy Wood is the perfect prototype.
Keep them coming 👍

[learnwithkris]

As I understand it, XUU is a fund-of-funds, but are they starting to hold the underlying assets directly? I ask this because it seems that the top 10 holdings is displaying stocks as well as the ETFs it holds. A few months back, the top 10 holdings only showed the underlying ETFs.

[DavidGordonca]

Ben, what is your opinion on SVXY? Feels more like selling insurance and not so exciting... :)

[misterr]

Almost like a inverse momentum. Things are going great, then they launch the ETF and boom, the returns gain momentum to the bottom hahahahahaha

[scotty]

Still in suspense how this will work out in the AI space.

[corgizx]

Need an ETF that only invests in stonks, stonks only go up

[hasben]

Ben, i'm curious if you use any software? If so what's your go to?

[domkaz]

Another outstanding video about investing. Thank you, Ben.