My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
“There are trade-offs. Investors can’t have the best of both worlds. Low-volatility strategies will tend to lag in bull markets.”
“Thanks to the ‘in-kind’ nature of flows and the custom basket process, it’s estimated that an ETF can potentially operate with 75 basis points of cost improvement over the mutual fund structure.”
“On average, stock spreads are more than 10-times the spreads that popular ETFs and futures trade.”
“I would never have imagined that I would be in this situation where we would not yet have approved one and other countries are moving ahead.”
“The role for any active ETF or smart beta ETF is to find cap weighting’s Achilles’ heel and fix it. With a lot of moving parts, you run a risk of not fixing it.”
“Capturing momentum swings has been challenging, but lucrative for those with the right timing.”
ETF Tweet of the Week: Amidst last March’s covid-induced market crash, the Federal Reserve resorted to purchasing bond ETFs to help stabilize credit markets. Could the Fed extend their purchases to stock ETFs during the next major swoon?
Everyone agrees the Fed will buy ETFs and stocks after the next crash. Can we just fast forward there already
— zerohedge (@zerohedge) July 19, 2021
ETF Chart of the Week: If the SEC were to approve all of the existing bitcoin ETF filings, bitcoin would be the most-tracked strategy by number of ETFs, exceeding the 13 ETFs benchmarked to the S&P 500 Index (including leveraged and inverse).
Source: Bloomberg’s Eric Balchunas