Investors beware: Avoid these 3 ETFs at all costs

Investors beware: Avoid these 3 ETFs at all costs

ETFs are an interesting option for many investors to invest their money over the long term and diversify their portfolio. However, not all ETFs are equally profitable. Some index funds have experienced significant losses in the past, particularly thematic funds, which have often underperformed the overall market in the first five years after launch.

Given the current situation, investors are strongly advised to remove three specific ETFs from their portfolios. The Global X China Electric Vehicle and Battery ETF has lost around 58 percent in value since its launch. Given the current problems in the electric car sector and the negative sentiment in the battery sector, no quick improvement is expected.

The Xtrackers Eurozone Government Bond 25+ ETF, although designed as a conservative bond ETF, has lost almost 40 percent of its value over the last three years. Given the continued reluctance to cut interest rates, a recovery is unlikely in the near future. Due to the stock-like fluctuations of this supposedly conservative asset, investors may want to consider alternative investment products.

The Global X SuperDividend ETF has lost a total of 19 percent in value since its launch, largely due to a design flaw. Selecting the 100 highest-dividend companies based on yield often resulted in stocks being added to the index shortly before a dividend cut and subsequently underperforming. Investors should therefore consider reassessing their exposure to this ETF.