QUICK TIP - Are thematic ETFs Like the Railroads and Telegraph?

In the US alone, the ETF sector has exploded into a $5 trillion industry. The number of funds has blossomed, which means that there are many funds that offer increasing specificity and focus. Thematic ETFs aim to isolate a target niche of the market. They can be narrow or relatively broad in scope. Many offer exposure to sectors that have been previously unavailable to retail investors. And often they are created to respond to investing fashions.In this Quick Tip, Morningstar Product Manager Mark Lamonica explains how thematic ETFs can often be compared to the telegraph (the Victorian Internet), railroads and fibre optics. At the time they had a compelling story, but the businesses that benefited from them were not necessarily the ones providing them. I love hearing strongly held opinions and it's worthwhile for beginners to understand that you are often being marketed to, rather than being provided with options to increase your investment returns.The complete episode and blog post can be found here: https://www.stocksforbeginners.net/blog/morningstarPortfolio tracker Sharesight tracks your trades, shows your true performance, and saves you time and money at tax time. Get 4 months free at https://www.sharesight.com/stocksforbeginnersDisclosure: The links provided are affiliate links. I will be paid a commission if you use this link to make a purchase. You will also usually receive a discount by using these links/coupon codes. I only recommend products and services that I use and trust myself or where I have interviewed and/or met the founders and have assured myself that they’re offering something of value. Stocks for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Stocks for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation. Hosted on Acast. See acast.com/privacy for more information.