News Digest: Thematic funds nurse large losses amid spike in volatility

March 1, 2022

News Digest:

Many prominent thematic exchange traded funds (ETFs) of the recent bull market have suffered huge losses recently, amid wild price swings and short-term trading, even as combined assets of such trend-following investment vehicles have soared from $61bn at the end of 2019 to $237bn by the end of 2021.



All ETFs tracking the four leading themes that received the highest inflows in 2020 and 2021 have registered a price decline of 25% or more over the past 12 months, as opposed to a double-digit positive return for the MSCI World Index.



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