ETFs To The Rescue!

“ETFs own almost 6% of the equity market, the highest ETF share on record. In contrast, mutual fund ownership fell to its lowest level since 2004 (24%).”


Chart Of The Week: Some Folks Are Trying To Pick Stocks Again

Right, so the thing about “alpha” is that it’s really fucking hard to generate when benchmarks only go up. Throw in the rampant proliferation of retail-friendly vehicles that track those benchmarks at a cost of just a few basis points in fees and you’ve got a veritable nightmare scenario for coke-sniffing, Perrier-Jouët-chugging, “2 and 20”-charging, Hamptons…

The Ugly Truth About ETFs Is Revealed (In A Footnote)

“[This assumes] the ETF secondary market remains balanced between buyers and sellers. this higher liquidity profile of ETF assumes secondary market liquidity does not disappear, which may be the case in theory during a sell-off or a one-way market. In these instances, the client (sale) order execution would require tapping underlying market liquidity. ETF liquidity would then just be the same as that of the underlying assets. If these underlying exposures are not liquid, ETFs would be not liquid either.”

Why You Shouldn’t “Invest” In 3X ETFs: Exhibit “B”

On Friday, people are buying the “Brazil just proved their political crisis is intractable” dip. Fresh off an exceptionally harrowing session that tripped circuit breakers and threatened to plunge the entire EM complex into chaos, the Ibovespa jumped nearly 3% as investors went “bargain” hunting in Latin America’s largest economy. As noted earlier, Michel Temer insists…

Presenting: “March Madness For ETFs”

It’s official: we’ve run out of ways to paraphrase ourselves when penning introductions to ETF posts. It’s the same narrative: rampant proliferation of low-cost passive vehicles creating all kinds of distortions and embedding all kinds of hidden risks in markets. Regular readers are well-versed. Those interested in the latest – and perhaps the most scathing…

One Manager Warns: “Today’s Weapon Of Mass Destruction Is A 3-Letter Word: ETF”

“The weapons of mass destruction during the Great Financial Crisis were three-letter words: CDS (credit default swap), CDO (collateralized debt obligation), etc. The current weapon of mass destruction is also a three-letter word: ETF (exchange-traded fund). When the world decides that there is no need for fundamental research and investors can just blindly purchase index funds and ETFs without any regard to valuation, we say the time to be fearful is now.”