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My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!

 

Advisors Turn to ETFs While Bond Mutual Funds Bleed Assets by Todd Rosenbluth

“As losses are likely to pile up this year for bond mutual funds, we expect more advisors and end clients to shift allocations toward ETFs.”

 

JPMAM, other managers find success with active ETFs by Kathie O’Donnell

“If you are a legacy mutual fund manager who is trying to enter the ETF market, it’s an obvious choice to use your active capabilities to offer your strategy, preferably in a transparent ETF structure.”

 

Do We Need A Spot Bitcoin ETF? by Sumit Roy

“The advisors that we’ve spoken to feel a little bit trapped. The spot ETF would be a great building block for them.”

 

Chasing Thematic ETFs’ Returns Has Set Investors Up to Fail by Bryan Armour

“Among the 10 best-performing thematic ETFs of 2020, all but one had a negative investor return from May 2019 through April 2022.”

 

Early Innings for Active ETFs by Lawrence Carrel

“This is ETFs 4.0, and it will be the ETF industry’s engine of growth going forward for a lot of reasons.”

 

ETF Tweet of the Week:  The deadline dates are quickly approaching for the SEC to make a decision on spot bitcoin ETF filings from Bitwise and Grayscale (June 29th and July 6th, respectively).  The strong consensus is the SEC will once again disapprove these ETFs.  Meanwhile, elsewhere in the world…

 

ETF Chart of the Week:  Nearly 60% of US equity ETFs have an active share of 96%+ versus the S&P 500.  What is active share?  Alpha Architect’s Wes Gray explains:

“An active share of 0, would imply there is a 0% difference between a given ETF and the SP500.  An active share of 100 would imply there is a 100% difference in holdings/weights between a given ETF and the SP500.”

Why is this noteworthy?  Again, from Wes:

“Market commentators sometimes suggest that the equity ETF market is just a bunch of ‘index funds’ that all do essentially the same thing: deliver undifferentiated stock market exposure.”

Another ETF myth goes to die.

Source:  Alpha Architect’s Wes Gray

 

Last Week’s ETF Buzz