RTCH - Inverse Thematic ETF

[peter2]

Just thought of a great idea for a thematic ETF. However I don't think Betashares, Vanguard or ETF Securities will go for it. It's an inverse ETF that will profit from the demise of all the thematic ETFs.

This ETF holds short positions in all the latest thematic ETFs that are being pumped into the market.

Why RTCH? Well seeing all the crap thematic ETFs being released makes me retch.

 

[Dona Ferentes]

But it's a timing thing, @peter2 . You have to launch the ETF (excellent idea, by the way) at the peak of the hype; can you guarantee that recent actions for the thematics will continue to slump? (Probably, looks like a given , so far).

 

[peter2]

Knew you'd get a chuckle out of that. The ETF providers are acting like bucket shops to attract the dumb money. Unfortunately it seems to be working. They're going to continue shoveling this manure until the investing public run out of money.

Can I guarantee that the performance of most of these thematic ETFs will slump? Yes. The mgt fees will ensure it and they're highly unlikely to beat the major market index ETFs. Remember the Buffett bet, that over a ten year period a portfolio of funds couldn't beat the S&P500 ETF.

 

[qldfrog]

Knew you'd get a chuckle out of that. The ETF providers are acting like bucket shops to attract the dumb money. Unfortunately it seems to be working. They're going to continue shoveling this manure until the investing public run out of money.

Can I guarantee that the performance of most of these thematic ETFs will slump? Yes. The mgt fees will ensure it and they're highly unlikely to beat the major market index ETFs. Remember the Buffett bet, that over a ten year period a portfolio of funds couldn't beat the S&P500 ETF.

I have to say i am surprised indeed by the nearly daily arrival in my mailbox of new ETF announcement.never remembered so many

 

[Dona Ferentes]

ETF providers are acting like bucket shops to attract dumb money. They're going to continue shoveling this manure until the investing public run out of money.

Can I guarantee that the performance of most of these thematic ETFs will slump? Yes. The mgt fees will ensure it and they're highly unlikely to beat the major market index ETFs.

And another provider could bring out VMIT. Just throwing it out there.

Also, I think we need a Motherhood ETF..... Maybe code of MTHR. Comprising all those causes that can't be criticised

 

[Dona Ferentes]

ETF providers are acting like bucket shops to attract the dumb money. Unfortunately it seems to be working. They're going to continue shoveling this manure until the investing public run out of money.

Can I guarantee that the performance of most of these thematic ETFs will slump? Yes.

Go for something that you think is topical; then sentiment, let alone market realities, turns against it and things may not go well. And diversification within the ETF, by holding a range of companies, won't help if the entire sector turns down.

We wish to thank the mottled fools for compiling this list

The 5 worst-performing ASX ETFs of FY 2022​

BetaShares S&P/ASX Australian Technology ETF (ATEC)
Our first laggard is this tech-focused fund from provider BetaShares. ATEC tracks one of the newer ASX indexes in the S&P/ASX All Technology Index (ASX: XTX). It holds many of the ASX’s largest tech shares, including Xero Limited (XRO) and Carsales.com Ltd (CAR)

Unfortunately, ASX tech shares were some of the hardest-hit companies last financial year, as we can see this in this fund’s performance. Over FY 2022, ATEC units lost 35.7% of their value.

BetaShares Cloud Computing ETF (CLDD)
Another BetaShares ETF, CLDD has only been around since February 2021. But it has certainly had a rough time over its short life. As the name implies, this fund focuses on global companies that operate in the cloud computing arena.

You might know some of its larger holdings such as Zoom Video Communications and Netflix. But having such a potent exposure to tech has also hampered CLDD, with this fund losing 35.79% over FY 2022.

BetaShares Global Robotics and Artificial Intelligence ETF (RBTZ)
Tech is certainly featuring prominently in this list. RBTZ is such an ETF, and one that concentrates on robotics and artificial intelligence companies from around the world. It includes companies such as NVIDIA and Yaskawa Electric Corp. RBTZ took a beating over FY 2022, losing 36.01% for its investors.

ETFS S&P Biotech ETF (ASX: CURE)
A tech ETF of a different kind, this fund from provider ETFS focuses on US biotechnology companies. You’ll find Covid vaccine provider Novavax here, as well as Twist Bioscience and Arrowhead Pharmaceuticals. But CURE investors were left wanting in FY 2022, with this fund going backwards by 40.51%.

ETFS Ultra Long NASDAQ 100 Hedge Fund (ASX: LNAS)
Our final and worst-performing ETF of FY 2022 is an index fund of sorts. LNAS tracks the US NASDAQ-100 (INDEXNASDAQ: NDX), giving investors exposure to 100 of the largest companies on the NASDAQ exchange.

However, LNAS is also leverage, meaning it is designed to amplify the gains or losses of the index it tracks. Sadly for investors, FY 2022 was a negative one for the NASDAQ. And due to LNAS’s leveraged nature, investors suffered a 49.99% loss as a result.

 

[frugal.rock]

And another provider could bring out VMIT.

Nothing like a good old fashioned Indian BARF ?

 

[peter2]

I like it that you actually typed in BARF on Trading View. You got too much time on your hands. There's plenty of spec's to find and trade.

 

[InsvestoBoy]

Just thought of a great idea for a thematic ETF. However I don't think Betashares, Vanguard or ETF Securities will go for it. It's an inverse ETF that will profit from the demise of all the thematic ETFs.

This ETF holds short positions in all the latest thematic ETFs that are being pumped into the market.

Why RTCH? Well seeing all the crap thematic ETFs being released makes me retch.

Someone launched this at pretty much the peak for ARKK, impressive timing https://sarketf.com/

 

[InsvestoBoy]

 

[divs4ever]

actually i thought ATEC ( i do not hold ) wasn't all that bad for a tech-themed ETF , it actually has some ( div. ) earners in the basket ( compared to the US counterparts )

the US some to prefer capital gains over div. returns

if the global ( and ASX ) markets take a major downturn ... ATEC MIGHT make it onto my watch-list ( in preference to trying to cherry-pick the best of the basket/sector )

 

[Dona Ferentes]

NAB Private Wealth’s Justin Greiner and BlackRock Australasia’s Jason Collins announced they had entered a commercial partnership, under which iShares (BlackRock’s global ETF subsidiary) will develop a new suite of ASX-listed funds and provide educational content for a new “ETF Centre” on the Nabtrade platform.

The pending funds, which are currently going through final approvals and due to launch on the local sharemarket in August, will feature at least two multi-asset ETFs and at least one thematic ETF focused on economic “megatrends” such as green energy technology.

............ I wonder who's kidding who?

 

[peter2]

Read that also and wondered if ASIC will vet the "educational" aspects. Aren't they going to try to influence potential investors into these products? I'm going for iRTCH or iVMIT.

 

[divs4ever]

i have found with ETFs in general you need to to more than 'get into the weeds ' you need to examine the soil the weeds are growing in as well and make sure the index they are bench-marking against is well founded as well

can't wait for an ETF based around the top ten stocks on say Wallstreet Bets ( that would never happen .. would it )

 

[Dona Ferentes]

Read that also and wondered if ASIC will vet the "educational" aspects. Aren't they going to try to influence potential investors into these products?

The whole game for these advice houses is based around "Core and Satellite" portfolio design

Core-satellite investing is a method of portfolio construction designed to minimize costs, tax liability, and volatility while providing an opportunity to outperform the broad stock market as a whole. The core of the portfolio consists of passive investments that track major market indices. such as the S&P 500 or ASX200. Additional positions, known as satellites, are added to the portfolio in the form of actively managed investments.

How it really works is the client, if only in passive index-hugging ETFs, says "but you're not outperforming, so why am I paying you?" so then a bit of sleight of hand is introduced, efficient frontier graphs produced,, and often the client will agree, by way of confirmation bias and because he/she read about it on ASF, to add MTHR or other thematic ETFs du jour. Add a bit of alpha, sort of thing, ride the wave, Ten years ago, it was FAANGs and Magellan Global among many.

 

[Belli]

And the providers want to make money for themselves, so the total fees involved are likely to be at the higher level and does that justify the out-performance, if any, as it provides an "opportunity" but no guarantee.

However, far be it for me to stop the punters dreaming of the easy road to riches. Dangle some baubles in front of them so $$ signs appear it their eyes and they'll go for it. Their funds and they can do what they like with them.

 

[frugal.rock]

@qldfrog are you responsible for this French CRAP?
Looking like getting pushed uphill with a pointy stick...?

 

[divs4ever]

And the providers want to make money for themselves, so the total fees involved are likely to be at the higher level and does that justify the out-performance, if any, as it provides an "opportunity" but no guarantee.

However, far be it for me to stop the punters dreaming of the easy road to riches. Dangle some baubles in front of them so $$ signs appear it their eyes and they'll go for it. Their funds and they can do what they like with them.

dreaming , yes , but also aware of the risk ( ACTUALLY aware ) is the optimal , lots of gotchas out there for the uninformed

 

[Dona Ferentes]

perhaps is should have had the code STNK ?

Ark Invest chief executive Cathie Wood is closing down one of her exchange-traded funds, the first time her company has pulled the plug on an ETF. The Florida-based firm is shutting down its ARK Transparency ETF (CTRU), which launched at the end of last year. With holdings like Teladoc Health and Spotify, the fund aimed to invest in companies that received high scores on transparency.

Ark said in a statement that Transparency Global, which shaped the fund’s underlying portfolio, will stop calculating the index at the end of July. The fund gained only $12 million in assets since inception, a fraction of the $9 billion in Wood’s flagship fund. The transparency fund’s price has dropped more than 30 per cent since its debut in late December.

 

[InsvestoBoy]

can't wait for an ETF based around the top ten stocks on say Wallstreet Bets ( that would never happen .. would it )

VanEck has BUZZ on the NYSE. There's also MEME from RoundHill.