WATCH LIST5 Theme-Oriented ETFs You Should Stay Away From
Artom Roberts
Intro
You can find an ETF for just about any stock category you could think of : natural resources, clean energy, drones, marijuana, healthcare.
You name it.
While investing in a theme can be rewarding (see our post about 5 Emerging Markets ETFs you should Buy Now), other themes are clearly not optimized for your portfolio’s performance or gains. It’s probably not a good idea to think your social agenda is a good investment plan.
Try to be careful on theme-oriented ETFs. Don’t confuse good intentions like wanting clean water with investing.
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Let’s look at 5 theme-oriented ETFs we would NOT recommend you to buy…
IHI-N
iShares DJ Medical Devices ETF
Medical devices have been fantastic the last 5 years. Like tech, we’re there already. PE is 40x, so a lot of the growth has already happened. It’s just too late.
IHI and the medical devices theme by itself doesn’t sound bad.
But with a PE of 40x it might be expensive and there is probably not a lot of room for growth (and gains).
- 1. Intro
- 2. Be careful with AI
- 3. Utilities and telecoms underperforming
- 4. Clean Energy as an investment?
- 5. Marijuana is already baked in