My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
“Clients can get the best of both worlds by buying Vanguard ETFs at firms like Fidelity and Schwab.”
“S3 Partners estimates short sellers of Russia-focused exchange-traded funds have paid around $2.6 million in borrow fees since the products were halted in early March.”
“If the proposal passes, it means that people who make long-term ETF investments are going to start generating annual tax liability every year.”
“Higher fees, higher tracking errors, lower liquidity and lower diversification made thematic ETFs riskier investments, the study shows.”
“Here more than in any other category, investors need to do their homework to understand what is inside the ETF and what will drive performance of the holdings.”
“It’s the longer-term holders, who often don’t know how these products work, who end up disappointed or devastated.”
“Effective this week, many of the ETF-related brands that advisors respect are under a new company: VettaFi.”
ETF Tweet of the Week: An ETF that has LONG been debated and contemplated is finally launching… the NightShares 500 ETF. Despite research showing that trading costs overwhelm any outperformance, this ETF will buy the S&P 500 at the market close each day and sell it at the open the following morning.
'NightShares' ETFs updated their prospectus, launch likely soon. The fee will be 55bps and the tickers are $NSPY & $NIWM. The ETFs will buy $SPY and $IWM at the close and then sell at the open so as to only be exposed to market outside of trading hours. pic.twitter.com/kMurNtTpGB
— Eric Balchunas (@EricBalchunas) May 18, 2022
ETF Chart of the Week: When market volatility rises, ETF trading tends to increase as well.
Source: iShares’ Gargi Chaudhuri