Investors are moving away from ETFs linked to specific themes, such as artificial intelligence and video games, towards funds linked to general stock market indices that are hitting all-time highs.
While inflows into equity ETFs continue to grow, thematic ETFs, which invest in companies linked to everything from solar energy to robotics to consumers, are also gaining ground. robotics to millennial consumers, are on track for their third consecutive year of net outflows, according to financial data and analysis company Morningstar.
This category, which holds $108 billion in total assets, has lost $5.8 billion in investor capital this year, exceeding outflows of $4.8 billion for all of 2023, according to Morningstar.
“It’s winter for thematic ETFs right now,” says Taylor Krystkowiak, investment strategist at Themes ETFs, an asset management company…
