Thematic ETFs that still excite experts
Specialists show funds with interesting long-term themes Apart from volatility and construction issues, several ETFs still attract attention After enjoying strong returns and inflows early in the pandemic, thematic ETFs have come down to earth with force. Demand for the product has declined, with flows to thematic ETFs across Europe totaling €0.6 billion (£0.5 billion) in the first quarter of 2022, the first quarter since 2019 in which they attracted less than €1 billion. That reflects some terrible performance: to quote some of the hardest hit, the VanEck Crypto and Blockchain Innovator UCITS ETF (DAGB) recorded a brutal paper loss of around 74 percent in the first half of 2022, while DLL Group UCITS Blockchain Equity and Digital Assets ETF (KOIP) before down 67.7 percent over the same period. As our chart below shows, a large number of other funds have incurred losses of at least 30 percent during that time – out of a sample of around 50 thematic ETFs, only five have ended thi