Despite the strong performance, “ETF Edge” host Bob Pisani contends ETFs built around a theme often come and go.
However, Strategas’ Todd Sohn, who tracks the ETF industry, thinks investing in U.S. manufacturing is a sound strategy. He points to the industrial sector’s runway for growth after a vast reduction in size over the past three decades.
“If I am going to play the industrials in a thematic way, I like the route of going active,” the firm’s managing director said. “I do think there is staying power here as opposed to some of the fads we’ve seen in the thematic space — particularly those that are a little more tech and growth oriented.”
The American Reshoring ETF is underperforming the broader market over the past three months, falling more than 4%.
