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Why Thematic ETFs Make Me Nervous


When it comes to investing, exchange-traded funds (ETFs) are near the top of my list. That's why I'm surprised by how nervous thematic ETFs make me. While I'm all about broad-market ETFs, those tracking a single sector immediately raise caution flags.

I know how valuable ETFs can be for building a diversified portfolio. However, here are some red flags I need to come to terms with before investing in a thematic ETF. Here's where I get stuck.

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Source Fool.com


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