A $50 Billion Letdown: How Themed Funds Lost Their Mojo in 2019

  • Assets inched back from rout a year prior as other ETFs boomed
  • Growth has slowed as investors opt for more diversified funds
ETF Boom Leaves Thematic Funds Behind
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One of the most hyped segments of the exchange-traded fund industry has hit a rough patch.

Thematic ETFs, which focus on industries like robotics, blockchain or cannabis, closed 2019 with about $51 billion under management, just 1% more than the previous high point for assets reached 15 months earlier, according to data compiled by Bloomberg Intelligence. By contrast, the overall U.S. ETF industry has grown 20% during the same period, and now oversees $4.4 trillion.