All shortcomings aside, thematic exchange traded funds (ETFs) have been enjoying a healthy few months. As we note across the page, funds like the VanEck Semiconductor ETF (SMGB) have totted up some chunky gains over the period, thanks in part to bets on the likes of Nvidia (US:NVDA).
Others such as the Invesco CoinShares Global Blockchain ETF (BCHN), the Xtrackers Future Mobility ETF (not listed in the UK) and the VanEck Crypto and Blockchain Innovators ETF (DAPP) all enjoyed gains greater than the S&P 500’s 11.2 per cent Q1 sterling total return.
As with plenty of other growth-oriented portfolios (from Scottish Mortgage (SMT) to the capital growth investment trusts), such stellar recent performance offers some hope after a challenging period dominated by rate rises. For some investors, it might pose an opportunity to take profits or at least get out at less of a loss.