Why Thematic ETFs Make Me Nervous
Thematic ETFs highlight some of the hottest stocks on the market. However, they may not be for everyone.
Overview
When it comes to investing, exchange-traded funds (ETFs) are near the top of my list. That's why I'm surprised by how nervous thematic ETFs make me. While I'm all about broad-market ETFs, those tracking a single sector immediately raise caution flags.
I know how valuable ETFs can be for building a diversified portfolio. However, here are some red flags I need to come to terms with before investing in a thematic ETF. Here's where I get stuck.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.