Thematic ETFs are a good way for investors to round out their asset allocations, but there are some quirks to these funds that require advisors to take a closer look.
EPFR Global’s fund flow data show that in the week that ended Oct. 17, which included the stock market rout, U.S. growth funds saw $1.1 billion of inflows while U.S. value funds lost $1.4 billion.
With a near decade-long bull market in equities, an allocation to alternatives has been a performance drag for most investors. Don’t expect that to change even as the bull market ends.