Thematic ETFs challenge naysayers | Investment Executive
A January research paper from Ohio State University slammed specialty ETFs for poor risk-adjusted returns, high fees and lack of diversification, concluding that such funds “deliver a negative alpha of about –4%” annually. “[T]hese [specialty] products compete for the attention of unsophisticated investors who chase past performance and neglect the risks arising from … under-diversified portfolios,” the paper states. “Specialized ETFs, on average, have generated disappointing perf...
Source: investmentexecutive.com