How to Manage Risk and Generate Returns with Thematic Investments
February 4, 2021
Investors should consider targeted exchange traded funds that marry best-in-class disruptive equities with sophisticated options strategies to create downside market mitigation and enhanced upside potential.
In the recent webcast,
Don’t Diversify Away a Good Idea: Rethinking Thematic Investing, Brian Kelleher, CRO, Simplify Asset Management, warned of the shortfalls of heavily relying on broad index-based funds like those that track the Russell 3000 Index. While the index provides instant diversification to the entire U.S. stock market, the strategy also dilutes exposure to innovative companies with greater growth potential.
For example, Tad Park, CEO and Founder, Volt Equity, highlighted a true champion in the innovative space: Tesla. He underscored the importance of data accumulation as the company is also the only one with a robust data engine to ensure that cars are constantly being updated with smarter A.I. In the autonomous driving category, Tesla has accrued a staggering amount of data from its low maintenance fleet, with 2 billion miles of driven data in store.