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The Big Shortfall: Understanding the gap in thematic funds 

Timing and market conditions influence the gap between total returns and investors’ actual returns 

Over the past five years, thematic funds had a total return of 7.3%, while investors only earned a 2.4% return. Why is there a gap between total returns and investors' actual returns? It's most likely due to cash flows.

This report dives into the thematic funds landscape to unpack the importance of how timing can impact investors' return outcomes. Our findings explore how the gap varies between focused and diversified funds as well as thematic mutual funds and exchange-traded funds (ETFs), in addition to how investors' behavior can mitigate the gap.

Read the full report to start bridging the gap. 

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Research Library The Big Shortfall: Understanding the gap in thematic...

What's Inside:

  • The importance of market trends and timing when investing in thematic funds.
  • Investors' behavior—like frequent trading—contributes to fund performance volatility.

  • Focused funds have experienced wider return gaps than diversified funds 


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