My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
“There are many other spot ETF applications still in front of the SEC, and they risk receiving the same fate unless the SEC’s concerns are mollified or some other legal argument can prevail.”
“The Chicago outsourcer is asking for the SEC’s blessing to list four exchange traded funds that deliver core-and-explore portfolios – in an optimal chassis.”
“Exchange-traded funds make it easy for investors to avoid running afoul of the wash-sale rule, while helping investors avoid missing any future rebound.”
“The overwhelming majority of ETFs will avoid the type of punch-to-the-gut taxable capital gains distributions that are in store for a large number of actively managed mutual funds this year.”
“While ESG ETFs like these do have some ESG criteria used within their index construction process, they are proof that having ‘ESG’ within the name of the fund doesn’t necessarily mean the companies included within the portfolio have low ESG risk.”
“If you look at Q1, everybody was talking about inflation. TIPS lost money, that’s because they’re bonds and they have duration exposure. IVOL really solves a problem that investors have.”
“There are 177 ETFs that have gathered more than $1 billion of new assets thus far in 2021.”
“The result is that the index providers have large market power and can demand high licensing fees knowing full well that ETF sponsors don’t have anywhere else to go.”
ETF Tweet of the Week: With the SEC continuing to deny approval of spot bitcoin ETFs, Grayscale has decided to take a different tack (click tweet to read entire thread)…
Last night our attorneys at Davis Polk sent a letter to the SEC arguing that approval of #Bitcoin futures-based ETFs, but not #Bitcoin spot-based ETFs, like $GBTC, is “arbitrary and capricious,” and therefore in violation of the Administrative Procedure Act (APA).
— Craig Salm (@CraigSalm) November 30, 2021
ETF Chart of the Week: “Two-thirds of flows into U.S.-listed ESG ETFs this year have gone to products with expense ratios less than 20 basis points.”
Like with most other ETF categories, investors are cost-conscious when allocating to ESG ETFs…
Source: Pensions & Investments/Ari Weinberg