Why Thematic ETFs Usually Underperform the Market

If you’re excited about an investment, it’s probably not a good investment.

Listen to the Rational Reminder Episode 185: Lighting your Money on Fire with Thematic ETFs where we do a deeper dive of the topic:
https://www.youtube.com/watch?v=libTTDzmVGw
https://rationalreminder.ca/podcast/185

Referenced in this video:
Earnings Growth: The Two Percent Dilution: https://www.cfainstitute.org/en/research/financial-analysts-journal/2003/earnings-growth-the-two-percent-dilution
The Big Market Delusion: Valuation and Investment Implications: https://www.tandfonline.com/doi/full/10.1080/0015198X.2020.1730655
Overconfidence and Speculative Bubbles: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.princeton.edu/~wxiong/papers/bubble.pdf
Competition for Attention in the ETF Space: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3765063
Betting against Quant: Examining the Factor Exposures of Thematic Indexes: https://jii.pm-research.com/content/12/3/5


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