My favorite ETF reads over the past week, along with my ETF chart of the week!
Jack Bogle Was Wrong About ETFs by John Rekenthaler
“Bogle staked Vanguard’s future on the belief that, ultimately, how funds were marketed and distributed was less important than the quality of the funds. He was correct in that prediction – but not in perceiving how ETFs advanced, rather than hindered, his cause.”
“The USO-driven market could fund additions to US production big enough to fulfill the Energy Information Administration’s early 2020 forecast for US output of 13.7 million barrels per day in 2021.”
“The spike in active ETFs may seem like a contradiction given the role that the ETF industry has played in undermining active management. But there are commercial reasons for the shift.”
“For three bond ETFs, Fed purchases accounted for more than 50% of new cash.”
“I tried in vain for 20 years to get DFA to launch ETFs as a share class of their open-end funds like Vanguard did, because it would have made those funds more tax-efficient. My plea fell on deaf ears.”
ETF Chart of the Week: A colorful depiction of rolling 3-month ETF inflows, with a growing share of money flowing to investment grade corporate and high yield bond ETFs.
Source: Ben Breitholtz