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

(Note:  Hot on the heels of the first single stock ETFs launching, the first single bond ETFs rolled out last week.  The first three articles below cover all the bases – what these are, pros, & cons.  There are now 20 single stock and bond ETFs.  Expect that number to quickly multiply.)

 

First single-bond ETFs look set to revolutionise access to Treasuries by Steve Johnson

“These highly targeted building blocks allow investors to take a more nuanced view on rates.”

 

Single-Bond ETFs Solve Some Key Investing Problems by Jared Dillian

“I described single-stock ETFs as financial mutants that benefit nobody, but single-bond ETFs are a surprisingly good idea.”

 

Single-Treasury ETFs: CurveNerd Catnip by Dave Nadig

“If the recent launches in the ETF space confuse you (what with multiple flavors of single-stock leveraged and inverse ETFs now dominating the daily blotter), then you’re not alone.”

 

Anti-ESG movement spawns new fund in battle against BlackRock, Vanguard and State Street by Jeff Benjamin

“This will be an interesting experiment.”

 

Vanguard overtakes BlackRock to claim title of largest bond ETF by Kathie O’Donnell

“As retail investors adopt bond ETFs, Vanguard has benefited from that.”

 

Dimensional Fund Advisors, long the flagship of factor investing, struggles to chart a course as a nimble rival and big foot competitors cut into its market–and exploit its slow move to ETFs by Oisin Breen

“If DFA had a ‘do over’ they’d probably enter the ETF business a few years earlier.”

 

ETFs shine brighter than mutual funds after brutal first half by Jackie Noblett

“We’ve long been saying the ETF is a better vehicle, a more efficient vehicle for active management.”

 

Best Ways to Approach Thematic ETFs by Sumit Roy

“In some ways, thematic ETFs are easier to grasp than sector ETFs.”

 

ETF Tweet of the Week:  A trend in the early stages of developing last year was “social influencers” seeking to monetize their large followings by leveraging the ETF wrapper.  Noteworthy ETF launches included Barstool’s Dave Portnoy putting his social capital (2.7 million Twitter followers) behind the VanEck Social Sentiment ETF (BUZZ) and Ross Gerber (260,000 followers) launching the AdvisorShares Gerber Kawasaki ETF (GK).  Ross specifically pointed to his social media engagement as a reason for the launch:

“One of the things that hit me in the last six months from my own experiences on Twitter is how much engagement I get from individual investors who want to engage with somebody like me, but they’re not necessarily looking for financial planning services.”

The recent market downturn temporarily put the kibosh on these types of launches, but now comes new ETF filings from Kevin Paffrath.  With 260,000 Twitter followers and 1.8 million YouTube subscribers, Kevin appears set to rekindle the trend of monetizing a social following by using ETFs.

 

ETF Chart of the Week:  Investors are growing a bit gun-shy at putting new money to work in ESG ETFs.  After two straight years of over $30 billion in inflows, only about $4 billion has flowed into the products so far in 2022.  I, for one, am not surprised…

Source:  Bloomberg’s Katie Greifeld

 

Last Week’s ETF Buzz