Since there are 30+ new readers this week, (yay!!) I thought I’d go back to the basics.

Also, be sure to check out new sections we added.

🌟Plus I love feedback so lmk your thoughts🌟

This is not investment advice and is intended for entertainment purposes only

What am i HODLing: Thematic ETFs

I started this thematic investing series because I’m very bullish on the Semiconductor industry and decided to craft my own allocation in 2021.

Sector/Thematic investing are timeless strategies many use to follow economic cycles and get exposure to companies within a subset of the economy.

Today, ETFs are BOOMING.

They are the perfect tool for newer investors to build a diversified package of companies or for those who don’t have time to manage their own portfolios.

Really, they are a tool for anyone, and $SPY, the S&P 500 ETF, probably outperforms me, you, and frankly all 50+ of us reading this right now.

And much like the saying, “There’s an app for that:”

“There’s an ETF for that”

If you like an industry, there’s probably a thematic ETF that lets you invest in a handful of companies in a nice package that trades under one ticker.

Exchange-traded funds make investing easier and cheaper for retail investors.

They are actually a Canadian invention dating all the way back to the 1990s (1993 to be exact).

In basic function, they are similar to a mutual fund.

BUT

They usually are way more fee-friendly.

Like WAY more

Thematic ETFs

Here are the top 5 thematic ETFs according to Bankrate:

1. First Trust Cloud Computing ETF (SKYY)

2. ARK Innovation ETF (ARKK)

3. Global X Robotics & Artificial Intelligence ETF (BOTZ)

4. First Trust NASDAQ Cybersecurity ETF (CIBR)

5. iShares Global Clean Energy ETF (ICLN)

These get NICHE.

But totally makes sense for what’s trending economically.

Here are my top 5 funniest ETFs:

1. Inverse Cramer ETF (SJIM)

   • For those who don’t know: Cramer is a Financial Media personality who has a tendency to Jinx companies and then the share price tanks

   • He’s the Economic version of the Cheese Touch

2. Roundhill MEME ETF (MEME)

   • This ETF mainly invests in meme stocks such as $AMC or $GME

     • Be cautious with this one… but it’s a fun concept!

3. Teucrium Corn Fund (CORN)

   • This fund tracks an index of corn futures contracts.

   • That’s right- you can invest in the great big lump of nobs that’s got the juice

4. Roundhill Video Games ETF (NERD)

   • Tracks an index of companies that engage in video game or esports activity

5. AdvisorShares Pure US Cannabis ETF (MSOS)

   • An actively managed portfolio of holdings related to the cannabis/hemp industry

   • Not your mamaw’s ETF

So if you wanted to invest in a basket of companies that only relate to cloud computing or AI, you could.

Or if you want to hold companies that Jim Cramer jinxes, go for it.

You may also be tempted to buy shares of $NERD or $CORN simply because they have funny tickers… I totally get that.

And all of that for typically around a .5-1% expense ratio.

The expense ratio changes depending on the ETF’s management structure and holdings.

Remember: Invest at your own risk and always do you research!

(And this is never invest advice)

EDUCATE YO-SELF

Passive vs Active ETF’s

If you took your series 7 this really isn’t going to be relevant to you.

(Also sorry you had to be a stock broker or be on a trade desk.)

Passive = Mirrored

Active = Managed

For an active ETF, you have a management fee because someone (or some AI bot) is going in and making decisions for the fund. A passive ETF mirrors the holdings of an index or sector and adjusts its positioning accordingly.

Managed ETFs typically have higher fees because you pay for that oversight and decision-making.

MEME of the WEEK

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