FYI: Narratives have been used to lure investors for centuries. Simple, compelling stories tap into our emotions, hijack our ability to think rationally, and persuade us to pursue investments that are unlikely to perform well. Persuasive narratives are prevalent with thematic exchange-traded funds. These funds attempt to capitalize on the growth of popular trends like cybersecurity or the spending habits of millennials, but they face several obstacles that might prevent them from delivering attractive performance.
Regards,
Ted
