3 Weekend ETF Charts: Any Questions?

Two of this week’s most popular posts were about ETFs.

Which isn’t surprising because after all, ETFs are becoming so ubiquitous that one is left to wonder whether they’ll eventually be the entire tape.

I, for one, think this is a really, really disturbing trend. It’s not that passive, low-cost investing isn’t a good thing. It’s just that as the old adage goes, you can always have “too much of a good thing.” And I contend that’s where we are with ETFs.

ETFs are derivatives (arguments to the contrary are merely semantics). Which by extension means “mom and pop” are now derivatives traders. And so are institutions. As for hedge funds, they’re turning increasingly to ETFs as a means of, to quote Deutsche Bank, “gaining quick and efficient asset class access both on the long and short side, similar to futures contracts.”

You can read the posts referenced above at the links listed below:

It being the weekend and all, I won’t put you through the intellectual wringer. Rather, I just wanted to highlight the following three charts which show flows broken down by type over three different time frames.

I think, once you have a look, you’ll appreciate why the title here is “Any Questions?”…


(Credit Suisse)


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