Investors continue to pour money into exchange-traded funds, or ETFs, in 2021 after sizable inflows in 2020 ($507 billion) and 2019 ($326 billion).
While the Federal Reserve is partly responsible for 2020’s record flows, the liquidity, tax and diversification benefits ETFs offer will continue to attract investors this year.
Thematic ETFs, in particular, will stay hot in 2021. These niche funds typically focus on disruptive technologies, such as cloud computing, robotics and rocket manufacturing, for investors who want exposure to emerging industries.
Does your portfolio contain any thematic EFT’s? Should it? How do you have your portfolio balanced? Was it analyzed in the last few years? Do you have auto-rebalancing in your portfolio? Remember this assists in the old adage sell high