Why you should worry about the flood of new cash into U.S. stock funds
MarketWatch
With investments, popular is not better. And the increase of new cash into stocks doesn't always portend good news. In fact, research by Itzhak Ben-David, the Neil Klatskin Chair in Finance and Real Estate, and Byungwook Kim, focused on the specialized ETFs that are created to capitalize on investor fads and market trends, and which typically receive a big influx of cash soon after launch. They found that these ETFs over their first five years after launch lag the market on a risk-adjusted basis by 5% per year on average.
May 4, 2021