FlowBank

1185 days ago • Posted by Martin Boujol

Broad-based ETF tend to outperform specialized ETF after lauch

As soon as the ETF is launched, broad-based ETF have a higher average return (still negative with adjusted risk), losing as much as 5% after 5 years, while specialized ETF lose over 30% in under 5 years. The main issue is that many investment reach their peak market value once they become fashionable, and the launch of an ETF can take several months. For more information about specialized (thematic) ETF, check out our article on the matter.

Source: FT

Broad-based ETF tend to outperform specialized ETF after lauch
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