Still, Northern Trust doesn’t create any industry-specific funds of its own, shunning the strategy in favor of other fundamental factors, like the potential for long-term growth and risk management, Thomas said. Chasing the success of an ETF that tracks gold or cybersecurity or 3-D printing can be an expensive challenge, and one that isn’t worth it to all issuers.
Because some funds are destined to fold like paper bulls.
“That’s just antithetical to our approach,” he said. “But I think, in a sense, people will try to catch that lightning in a bottle.”
This article was provided by Bloomberg News.