Lux Capital Launches Digital Health Solutions ETF: EKG
When it comes to getting the most diversification bang for your buck, it’s hard to beat exchange traded funds (ETFs) which typically offer the performance of whatever index they’re tracking for a reasonable expense ratio. While ARK Invest made waves by releasing active ETFs that attempted to beat the markets, your typical ETF simply tracks an index that’s offered by a provider whose sole job is to provide exposure to a particular investing theme. There’s usually a methodology document that accompanies an index so that any interested party can understand how the index constituents are selected, weighted, and change over time.
Fintech firms like Motif Investing tried their hand at allowing the public to create their own baskets of stocks, but they eventually shuttered, and their intellectual property was acquired by Charles Schwab. Now, there’s another fintech startup that believes “great investors and investment ideas can come from outside of the established asset management firms.” They’re called Thematic, and they’re backed by notable emerging tech investor Lux Capital.
Our mission is to create a world where domain experts can develop investment products and share their best ideas at scale, thereby creating economic opportunity for many.
Credit: Thematic
Disturbing Themes with Thematic ETFs
Thematic ETFs provide exposure to a universe of stocks that share a particular sector, industry, or some other common link. We wrote about how thematic ETFs work a couple of years ago, and have covered a number of these b
