My favorite ETF reads this week, along with my ETF chart of the week!
The Timely, Bear Market, Non-Transparent ETF Launch 10 Years in the Making by Hazel Sheffield
“Non-transparent ETFs have showed up just as a decade long bull market has ended and whose spectacular run hastened the hemorrhaging of funds from active to passive strategies.”
“As long as I can remember, people have predicted that ETFs would break, and they haven’t broken. Diverging from their intraday net asset value doesn’t count. The fund structure is pretty much indestructible.”
“The need to constantly roll futures is the biggest cost for most commodity ETFs.”
“I would argue that you should not be investing in this if you are not allowed to invest in the underlying assets.”
“Buy, hold, rebalance. But that, too, can hit a snag when the world is faced with a series of firsts: pandemic, economic shutdown, shelter-in-place, negative oil prices, etc.”
ETF Chart of the Week: Investors hoping to play an airline industry rebound through the US Global JETS ETF (JETS). $650 million has flowed into the ETF this year, with new money added every day since early March.
Source: Bloomberg’s Eric Balchunas