My favorite ETF reads over the past week, along with my ETF chart of the week!
“What if ETFs actually eased, rather than exacerbated, the market mayhem that broke out last month?”
“Despite tomes of rules and methodologies that are meant to guide index activity such as rebalancing and reconstitution, the index industry’s response to the COVID-19 pandemic was handled largely on the fly.”
“As I watch all the craziness that is going on with the United States Oil Fund LP (USO), I can’t help but feel a sense of deja vu.”
“The problem wasn’t that ETFs traded to perceived discounts, plummeting below some Platonic idea of fair value, it was that Net Asset Values for bonds are inherently flawed.”
ETF Chart of the Week: Holdings in the World’s Most Popular Oil ETF, the United States Oil Fund (USO)
Despite breathless media coverage, USO held no May futures when the contracts went negative on April 20th. However, the fund has continually altered its portfolio recently to accommodate record inflows and extraordinary oil market conditions.