3 Overrated ETFs

Morning Star00:00

Brendan McCann: A few themes have dominated the ETF market in 2026. Investors have piled into high-flying technology ETFs, specifically those oriented toward artificial intelligence and semiconductors...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2658974412?lang=en_US&edition=fundamental","thumbnail":"https://morningstar-morningstar-prod.web.arc-cdn.net/resizer/xHZiIXO96eIhSArlOiUUcSznALA=/2000x1125/d10o6nnig0wrdw.cloudfront.net/08-11-2026/t_848758ce763142b5850c55abfe2bd00a_name_file_960x540_1600_v4_.jpg","is_english":true,"pubTime":"2026-08-12 00:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2658974412","market":"nz","top_or_hot":-1,"title":"3 Overrated ETFs","media":"Morning Star","content":"<div>\n<p>Brendan McCann: A few themes have dominated the ETF market in 2026. Investors have piled into high-flying technology ETFs, specifically those oriented toward artificial intelligence and semiconductors...</p>\n\n<a href=\"https://www.morningstar.com/funds/3-overrated-etfs-2\">Source Link</a>\n\n</div>\n","source":"morningstar_fund_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Overrated ETFs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Overrated ETFs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-12 00:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.morningstar.com/funds/3-overrated-etfs-2><strong>Morning Star</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Brendan McCann: A few themes have dominated the ETF market in 2026. Investors have piled into high-flying technology ETFs, specifically those oriented toward artificial intelligence and semiconductors...</p>\n\n<a href=\"https://www.morningstar.com/funds/3-overrated-etfs-2\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BKSE","symbol_name":"BNY Mellon US Small Cap Core Equity ETF","start_time":0,"source_url":"https://www.morningstar.com/funds/3-overrated-etfs-2","article_id":"2658974412","we_media_id":null,"thumbnails":["https://morningstar-morningstar-prod.web.arc-cdn.net/resizer/xHZiIXO96eIhSArlOiUUcSznALA=/2000x1125/d10o6nnig0wrdw.cloudfront.net/08-11-2026/t_848758ce763142b5850c55abfe2bd00a_name_file_960x540_1600_v4_.jpg"],"rights":{"source":"morningstar_fund_highlight","url":"https://www.morningstar.com/funds/3-overrated-etfs-2","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2658974412","pubTimestamp":1786464000,"columns":[],"sourceInfo":{"source_id":"morningstar_fund_highlight","name":"Morning Star"},"weMediaInfo":null,"summary":"Brendan McCann: A few themes have dominated the ETF market in 2026. Investors have piled into high-flying technology ETFs, specifically those oriented toward artificial intelligence and semiconductors","collect":0,"end_time":0,"defaultTopTitle":"morningstar.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BKSE":"BNY Mellon US Small Cap Core Equity ETF","TZA":"罗素2000指数三倍做空ETF","RDTE":"Roundhill Russell 2000 0DTE Covered Call Strategy ETF","ARTY":"ISHARES FUTURE AI & TECH ETF","UWM":"罗素2000指数ETF两倍做多","FTKI":"First Trust Small Cap BuyWrite Income ETF","CALF":"Pacer US Small Cap Cash Cows ETF","IWMI":"NEOS Russell 2000 High Income ETF","IWM":"罗素2000指数ETF","SSCP":"SMART Small Cap ETF","DFAS":"Dimensional U.S. Small Cap ETF","ABLS":"Abacus FCF Small Cap Leaders ETF","DES":"小盘高红利ETF-WisdomTree","CPRA":"Calamos Russell 2000 Structured Alt Protection ETF - April","CGMM":"Capital Group U.S. Small and Mid Cap ETF","ITWO":"ProShares Russell 2000 High Income ETF","ABCS":"Alpha Blue Capital US Small Mid Cap Dynamic ETF","CPRJ":"Calamos Russell 2000 Structured Alt Protection ETF - July","IWMY":"Defiance R2000 Enhanced Options & 0DTE Income ETF","TNA":"罗素2000指数三倍做多ETF-Direxion","IWY":"iShares Russell Top 200 Growth I","AVSC":"AVANTIS U.S. SMALL CAP EQUITY ETF","CPRO":"CALAMOS RUSSELL 2000 STRUCTURED ALT PROTECTION ETF - OCTOBER","BUFS":"FT Vest Laddered Small Cap Moderate Buffer ETF","URTY":"ProShares UltraPro罗素2000","DGRS":"WisdomTree U.S. SmallCap Dividen","RSSL":"Global X Russell 2000 ETF","CPRY":"Calamos Russell 2000 Structured Alt Protection ETF - January","CAFG":"PACER US SMALL CAP CASH COWS GROWTH LEADERS ETF","FESM":"FIDELITY ENHANCED SMALL CAP ETF","AIPO":"Defiance AI and Power Infrastructure ETF","EES":"WisdomTree U.S. SmallCap Fund","FNDA":"Schwab Fundamental U.S. Small Company ETF","BBSC":"JPMorgan BetaBuilders U.S. Small Cap Equity ETF","FDM":"First Trust/First Trust Dow Jone","CHAT":"ROUNDHILL GENERATIVE AI & TECHNOLOGY ETF","SRTY":"罗素2000指数三倍做空ETF-ProShares","RYLD":"Global X Russell 2000 Covered Call ETF","SVAL":"iShares US Small Cap Value Factor ETF","CSF":"VictoryShares US Discovery Enhanced Volatility Wtd ETF","ESML":"iShares ESG Aware MSCI USA Small-Cap ETF","VTWO":"Vanguard Russell 2000 ETF","AGIX":"通用人工智能 ETF-AGIX","TWM":"罗素2000指数两倍做空ETF","RDTY":"YieldMax R2000 0DTE Covered Call Strategy ETF","FDN":"First Trust Dow Jones Internet I","AFSM":"First Trust Active Factor Small Cap ETF","FLQS":"Franklin U.S. Small Cap Multifactor Index ETF","ESIX":"SPDR S&P SMALLCAP 600 ESG ETF","RWM":"罗素2000指数反向ETF"},"translate_title":"3 只被高估的 ETF","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CGMM":0.63,"CPRY":0.73,"ITWO":0.73,"CPRJ":0.73,"ABCS":0.63,"BKSE":0.63,"UWM":0.63,"FTKI":0.73,"CPRO":0.63,"IWMY":0.73,"CHAT":0.63,"CPRA":0.73,"BUFS":0.63,"RDTY":0.73,"IWM":0.73,"BBSC":0.63,"DGRS":0.63,"CAFG":0.63,"RWM":0.63,"IWY":0.63,"AGIX":0.63,"SRTY":0.63,"URTY":0.63,"RYLD":0.63,"EES":0.63,"CSF":0.63,"TZA":0.73,"FESM":0.63,"SSCP":0.73,"RSSL":0.73,"AVSC":0.63,"DFAS":0.63,"SVAL":0.73,"ABLS":0.73,"DES":0.63,"ESML":0.63,"FDN":0.9,"FNDA":0.63,"AFSM":0.63,"CALF":0.63,"VTWO":0.73,"RDTE":0.73,"TWM":0.63,"AIPO":0.73,"FDM":0.63,"ESIX":0.63,"FLQS":0.63,"ARTY":0.63,"TNA":0.73,"IWMI":0.73},"content_text":"Brendan McCann: A few themes have dominated the ETF market in 2026. Investors have piled into high-flying technology ETFs, specifically those oriented toward artificial intelligence and semiconductors. Small-cap stocks have seen a reversal in fortune and have outperformed large-cap stocks year to date.There are countless ways to gain exposure to those trends, but investors can flock to flawed ETFs or those that lack long-term merit. The three overrated ETFs outlined here are popular with investors, but leave something to be desired.3 Overrated ETFsVanguard Russell 2000 Index Fund ETF Shares VTWOIShares A.I. Innovation and Tech Active ETF BAIRoundhill Memory ETF DRAMThe first is Vanguard Russell 2000 Index Fund ETF Shares VTWO. Aptly named, it tracks the Russell 2000 Index. It’s a popular choice in the small-blend Morningstar Category, but it has drawbacks. The Russell 2000 Index quickly comes to mind when thinking of small-cap stocks. It’s often quoted in financial news, and it is a great barometer for keeping the pulse on that slice of the market, but it’s not an ideal candidate for an index fund, and there are better options out there. The ETF’s trading costs and lack of screens are the main issues. The Russell 2000 Index does not use turnover buffers for its smallest holdings. Those tend to be the hardest to trade in the most volatile stocks, which come with higher trading costs. The stocks cycle in and out of the portfolio, adding to the ETF’s transaction costs and cutting into returns. Some of the best small-blend peers incorporate liquidity screens, profitability screens, or focus on larger and more stable stocks. On the plus side, this ETF is cheaper than its cousin, iShares Russell 2000 ETF IWM.The next ETF targets AI. IShares A.I. Innovation and Tech Active ETF BAI is actively managed and focuses on the most advanced companies across the AI tech stack. It’s one of the most popular technology ETFs. Portfolio manager Tony Kim brings an extensive technology background to the strategy. However, the strategy’s narrow focus on artificial intelligence makes it less durable.The ETF holds around 40 stocks and stows about the same as the average technology fund in its top 10 holdings—roughly 50%—but the ETF is more volatile than its average peer. The team has the flexibility to invest across the globe and trade stocks that aren’t in the technology sector if they align with the AI theme. For example, the team invested in Siemens Energy ENR, which is an energy technology firm. However, the diversification benefit of those holdings is somewhat limited since companies exposed to AI can respond to the same market drivers. Moving on to an even more concentrated AI play: Roundhill Memory ETF DRAM focuses on companies and computer memory and storage tied to the buildout of AI infrastructure. The ETF has seen massive inflows since its April 2026 inception. It’s pulled in roughly $20 billion in just three months. The ETF’s popularity may have something to do with its performance; it returned 156% from its inception through June 2026. The ETF holds a hyperconcentrated portfolio with exposure to only 12 companies as of July 13, 2026. To maintain its favorable tax status, it uses swaps to gain exposure. Swaps can circumvent diversification rules the ETF would otherwise violate if it only held the stocks of its portfolio companies.Highly concentrated portfolios can skyrocket as this ETF has, but they can just as easily dive bomb. From the end of June through July 13, the portfolio fell 22%. Exposure to just a few companies leaves this ETF vulnerable. Three stocks took up roughly 75% of the portfolio as of July 13: Micron MU, Samsung 005930, and SK Hynix SKHY. Not to mention, the ETF’s April 1 launch date coincided with a temporary dip in price of those three stocks. The ETF’s concentrated portfolio makes it a poor choice for long-term investors. Sky-high performance is unlikely to persist, and the ETF’s fortunes could turn down quickly.Watch 3 Leading Active Fixed-Income ETFs for more on ETFs.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.1","shortVersion":"4.47.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2658974412","isCrawlerRequest":true}