My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
“Whenever you single out a certain group of products, especially when you call them complex, it scares people.”
“The US system is based on disclosure, as opposed to a nanny state where you are not allowed to own any of these things.”
“There should be a shift back towards active investment. Passive has gone too far.”
“I feel like we are in about the 3rd or 4th inning for the ETF industry.”
“The ETF industry remains extremely healthy, and the case for using these typically low-cost, highly liquid products is robust.”
ETF Tweet of the Week: An interesting recent phenomenon in the ETF world has been the money flowing into the ARK Innovation ETF (ARKK), despite the fund being down over 50% in 2022. There are several theories, from bottom fishers to “create-to-lends” to diehard Cathie Wood believers. Whatever the reason, ARKK has taken in an astonishing $1.3 billion in new money this year.
$ARKK pulled in nearly $400 million in flows Mon.-Thurs. this week.
Thursday's haul was $334 million.
The fund's YTD flows total now stands at $1.3 Bil.
The fund's YTD return is -52%. pic.twitter.com/Eucl4Z8l5J
— Ben Johnson, CFA (@MstarETFUS) May 6, 2022
ETF Chart of the Week: While 2022 ETF flows had been resilient in the face of deteriorating financial markets, they began showing some chinks in the armor last month, with $10.5 billion in outflows. That ended a record-setting 34-month streak of inflows where they took in $1.8 trillion of assets.
Source: State Street’s Matt Bartolini