Five thematic investing myths busted
'Just a flash in the pan,' 'too risky,' and 'more likely to close' are just some of the accusations made about thematic funds. But what does the data say?
Thematic investing has enjoyed an explosive rise in recent years – not least because it allows investors to get excited about specific topics while remaining properly diversified.
But not all the press has been good, and with good reason. Accusations abound that thematic funds are an expensive and risky way of deploying capital, and investors might just be better off investing in sector funds.
As we kick off a special week of content devoted to thematic investing, I'm joined by Morningstar's in-house thematics expert. Kenneth Lamont is a senior analyst for passive strategies research, but don't let the technical title fool you. Thematics is his bread and butter. In this video, he helps me clarify some of the misconceptions about his pet topic.
Watch the video above. A full transcript will be available shortly
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