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

 

The Accidental Modernization of the Fixed Income Markets by Julie Segal

“After dire predictions that exchange-traded funds would exacerbate volatility in fixed income, investors instead used ETFs to skirt many of the antiquated bond market’s structural problems.”

 

Who’s Behind Your ETF Index? by Todd Rosenbluth

“The five largest index providers for equity ETFs were behind 92% of the mid-2020 industry assets.”

 

The Covid-19-Induced Volatility of 1H2020 Accelerated ETF Fee Compression by Elisabeth Kashner

“ETF investors are now paying $388 million less per year than they would have last December. 32% of the savings are directly attributable to fee cuts while 68% of the savings came from investors directing cash to a low-cost ETF or moving capital from an expensive ETF to a cheap one.”

 

With Schwab in Motif mode, Jon Stein tells Bloomberg Betterment’s ETF view is shifting, talks ‘revolution,’ but declines through spokesman to confirm any imminent shift to direct indexing by Oisin Breen

“In many scenarios, DI is not a clear benefit to customers as costs continue to race to zero on ETFs.”

 

ETF Chart of the Week:  2020’s record pace for bond ETF inflows is impacting the composition of the ETF market.  If you look closely, you can see bond ETFs putting a dent in equity ETFs’ dominance.  According to FactSet’s Elisabeth Kashner, bond ETFs now hold 22 cents out of every U.S. ETF dollar compared to 19 cents at the beginning of the year.

Source:  FactSet’s Elisabeth Kashner

 

Last Week’s ETF Buzz