Despite recent volatility in the tech sector, some experts believe thematic ETFs focused on specific technology trends, like artificial intelligence, could still offer investment potential. While acknowledging the risks and shorter holding periods associated with these funds, they highlight the value of active management and the opportunity for outperformance.
Even with recent rotation away from megacap tech stocks, there may still be a case for investing in thematic tech exchange-traded funds., which is up 13.8% year to date as of Friday's market close. But despite recent volatility in the group, the firm's CEO Dave Mazza thinks the investment thesis is still intact." this week."Certainly, we saw a wobble in July and August. If you look over the last month, performance has generally been in line with the market.
"This is a question of having the right tools for the right job," Nadig said in the same interview."The average holding period on thematics is weeks, not years, so people use these as ways of expressing short-term opinions." Still, funds such as Roundhill's may come at a relatively steep cost. The actively managed CHAT ETF has a management fee of 0.75%."Having an active manager overlay on it makes a lot of sense, because this is fast moving technology," he added.
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