Traders Fleeing ‘Micro Bubbles’ Yank Billions From Thematic ETFs
- Current rate environment has been a headwind for these funds
- Issuers are shuttering ETFs, dealing with dwindling assets
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After booming in the anything-goes pandemic era, a once-fashionable investment strategy is falling out of favor anew, hitting some niche ETF providers along the way.
Investors have already yanked nearly $4 billion so far this year from exchange-traded funds investing in themes like clean energy and cloud computing, after withdrawing $4.6 billion from such funds as a whole in 2023, according to Bloomberg Intelligence.