Beware "Thematic" (trendy) ETFs

One of the ETF strategies least likely to succeed is one based on a theme. A recent case in point  is the eventshares Republican Policies ETF

According to the sponsors:

The EventShares Republican Policies Fund’s investment objective is to seek capital appreciation by investing in market segments that the Advisor believes will be impacted by the enactment of Republican Policies.

The fund gives:

Access to a diversified basket of companies and industries aimed to benefit from Republican Policies. The portfolio is rebalanced to maintain its tailored exposure around political narrative changes.

To say the least the "political narrative" of the current administrations political/economic policy is not exactly consistent. So its not surprising that the current focus towards trade policy has left the people at eventshares scrambling to respond.

Bloomberg (via Financial Advisor Magazine) Investment News)

Confused by the Trump trade policies? You’re not alone.

An ETF that’s designed to own stocks affected by Republican policies sees more risk than opportunity in the president’s tariff showdown with China and is taking cover -- just like most of the rest of the market....

The ETF hasnt exactly been attracting assets...it holds under $1 million

And if you think the Democrats will take over the House and be able to push their policies you can "flip" your trade and buy the eventshares Democratic Policy ETF.

No they are not offering an eventshares political stalemate ETF.