My favorite ETF reads this week, along with my ETF chart of the week!
“For ETFs in particular, contango can be a killer. As long as contango lasts, replacing contracts with more expensive contracts will mean the ETF must buy high and sell low, thus steadily eroding investors’ returns.”
“The Fed chose to start with ETFs rather than bonds as significant hurdles remain on the latter.”
“I would put a big line in between physically-backed commodity ETFs and the ones that use futures and have to roll them. In the worst case scenario, they deliver gold to your door. That’s a different situation than a barrel of oil.”
ETF Chart of the Week: Investors fled money market funds, bond ETFs, and bond mutual funds at a record pace during a two-week stretch in March. Notably, while ETFs have received the bulk of media attention, outflows were far greater in bond mutual funds.
Source: The Wall Street Journal