ETF investors jumped into a host of lossmaking trades in 2023

January 8, 2024--The unusual behaviour hit returns but also challenges theory that buy-high-sell-low mentality tends to prevail
Exchange traded fund investors pumped money into a host of lossmaking trades last year while pulling money out of a range of better-performing assets.

The unusual move, challenge the received wisdom that investors all too often jump on passing bandwagons and buy whatever is rising in value, typically at the wrong point in the cycle.

In the short term, at least, though, the divergences between performance and flows will have hit ETF investors in the pocket.