My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
“Ever wonder why so many new ETFs these days are actively managed? There’s a reason for that.”
“Min-vol will have its day in the sun again, but right now, investors want max vol.”
“The ETF Management Matrix embraces the transparency of the ETF structure to group all US-listed equity ETFs by comparing the investment approach to the diversification of the underlying holdings.”
“Lower volatility ETFs provide exposure to historically lower risk securities, which, for some investors, matters more than upside potential.”
“While actively managed exchange-traded funds are elbowing their way into the ETF ecosystem, passive indexes still dominate for their low costs and sheer quantity.”
“Canada has long been out in front with respect to ETF product development.”
“What if a new kind of ETF (call it the CryptoETF) could access this information as a Portfolio Token?”
ETF Tweet of the Week: Despite the volatile week for ARK and Cathie Wood, the ETF structure functioned perfectly.
Important nuance to all the (somewhat unseemly) crowing about outflows in $ARKK. The fund has traded SPOT ON fair value the whole time. Last 5 trading days. There are two lines on this chart: trading price and INAV. Not that you could tell. pic.twitter.com/JI1K4OO3UU
— Dave Nadig (@DaveNadig) February 26, 2021
ETF Chart of the Week: Here we go again. GameStop’s weighting in the SPDR S&P Retail ETF (XRT) surged this week. XRT uses an equal-weighting methodology, with each holding targeted at approximately 1% of the ETF. Act II of the GameStop drama sent the stock’s weighting in the ETF to over 7%.
Source: Bloomberg’s Eric Balchunas