First, theme funds invest more in small-cap stocks.
This may be somewhat different from our conventional understanding. Compared with the Morgan Stanley Global Stock Index, which is mainly composed of large companies, 88% of theme fund owners invest in small companies. Of course, this is based on a global perspective. In the domestic market, the most popular and worthwhile theme funds, such as consumption and medicine, mainly invest in leading stocks with long-term investment value in the industry.
Second, it is mainly investment in growth style.
The most important purpose of theme funds is to seize the investment opportunities of corresponding industries or themes, so nearly two-thirds of theme funds in the global market have obvious growth investment preferences in investment style, mainly represented by science and technology theme funds.
Only about 9% of theme funds have obvious value investment bias, and most of them are economic themes related to entities such as agriculture and resources.
Third, the dispersion is relatively strong
Theme funds are mostly scattered in the industry. Only a few theme funds, about 10%, choose stocks of a single industry in the global industry classification standard to build a portfolio.
Similarly, most theme funds are also very dispersed in geographical allocation, while funds with a single country allocation strategy mainly invest in the United States, China, Japan or South Korea.
The characteristics of this diversified investment show that most theme funds have a broad definition of the theme and flexible operation. The allocation of industries or regions will change flexibly with time and market, and investors need to track them in time during the investment process.
This function is mainly aimed at QDII funds in the domestic market.
Fourth, the rate is higher.
The winning rate of theme funds can be said to be the highest in Public Offering of Fund market. Higher interest rates will increase transaction costs. If investors are used to intraday trading, the transaction rate of theme funds will drag down the fund's income to some extent.
Fifth, the persistence is weak.
Theme funds invest around the theme, and the market hotspots are constantly changing. When the industry or theme stands at the forefront, the corresponding theme fund responds fastest and best. But when the wind blows over, it may also face a big retreat. The persistence of fund performance is relatively poor.