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What investors should know about investing in thematic ETFs

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Jay Jacobs from Global X says investors shouldn’t underestimate how broad thematic exchange-traded fund universe is.

CNBC’s Senior Vice President and Head of Research and Strategy at The firm, said that more than three quarters of all ETFs in this market were launched within the past year. “ETF Edge”This week.

Jacobs stated in Monday’s interview that the biggest mistake some investors could make is to think of thematic investment as just looking at technology.

Global X’s top-growth ETFs for this year are U.S. Infrastructure Development(PAVE). Lithium & Battery TechJacobs said that LIT (low-level IT) don’t have any tech exposure.

He stated that investors have found diversification by looking beyond tech and into the thematic area.

There are many top thematic ETFs are downAlex Shepard, founder of ETF Action, said that investors need to be aware of the risks involved in buying ETFs.

He stated that you should be aware that volatility is possible and risk increases are both factors to be mindful of when looking at above-average returns from passive broad-based indexes.

Shepard believes that there are new ways to invest which could mitigate the risk.

He said that even though most products on the market are considered passive, this doesn’t necessarily mean they aren’t being used to a core function.

Shepard stated that active strategies account for only $300 billion of assets.

He stated that investors and advisors were unable to think creatively 20 years ago. Now you can see almost 2,800 U.S. listed ETFs. The tools they have now allow them to adjust their portfolios based on the risks and their goals. This is a first-of its kind in history.

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