Single-theme ETFs

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Single-theme ETFs

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34 segments

0:00

In the ETF world, right, you have your

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core exposures. S&P, bonds, small caps.

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>> QQQ

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>> QQQ

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>> SOX

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>> And every what happens is folks

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complement that with thematic funds.

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Thematic funds blur the line between

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sectors. You think about uh natural

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resources, energy materials.

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>> Right.

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>> Nuclear stocks, cybersecurity.

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Can have tech and communications or

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industrials in there.

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>> So you could have a theme where the

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stocks in the ETF

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are in more than one sector.

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>> It's meant to

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>> Because it's a multiple theme.

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>> Yeah, and people like to add those cuz

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it's adding to a portfolio, but it's

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also reflective of performance chasing.

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The amount of times you see a single

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theme get hot and all of a sudden

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there's massive flows into it. It's

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reflective of herding behavior. So just

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be careful when buying single theme

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ETFs. They can just blow up your whole

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portfolio or at least not the whole the

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part of it.

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>> Uh whichever part you like you got it in

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there.

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>> Yeah, and how overloaded you get on

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there.

Interactive Summary

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In the ETF world, core exposures like S&P, bonds, and small caps are often complemented by thematic funds. These thematic funds blur the lines between traditional sectors, potentially including stocks from various industries like tech and industrials within a single theme such as cybersecurity or natural resources. While attractive for portfolio additions, their popularity often reflects performance chasing and herding behavior. Investors are cautioned to be careful when buying single-theme ETFs, as they can significantly impact a portfolio if overloaded.