My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
ETFs’ Growing Proxy Power by Jessica Ferringer
“If proxy voting information becomes more readily accessible, ESG due diligence could shift from looking at sectors and specific holdings to a deeper focus on how fund managers are voting.”
Enough Juice for the Squeeze? Model Portfolios for Modern Markets by Dave Nadig
“ETF issuers put their own ETFs in their free model portfolios. This should surprise literally nobody.”
Charts with Chartolini: Rookie ETFs Stumble in 2021 Debut by Matt Bartolini
“The record ETF launches in 2021 are great from an industry maturity perspective, particularly the addition of more active funds. But with more choice, there needs to be more focus.”
Important Insights Into Index Versus Active ETF Management by Wesley Gray
“Index ETFs come with increased transparency and marketability; Active ETFs come with lower operational costs and increased portfolio management flexibility.”
David Booth’s Dimensional Is Already the Biggest Active ETF Firm by Katie Greifeld
“Dimensional is on the cusp of becoming one of the top 10 largest U.S. issuers.”
U.S. bond ETFs inflows hit $207 billion in 2021 – CFRA report by Kathie O’Donnell
“ETFs are transforming and modernizing the bond markets by increasing transparency, improving liquidity and lowering trading costs.”
ETF Tweet of the Week: After posting a nearly 160% return in 2020, the ARK Innovation ETF (ARKK) is currently down over 50% from its February 2021 high. Morningstar’s Jeffrey Ptak offers some historical context on the ETF’s massive performance swing (click tweet to read entire thread)…
A thread on what we're seeing with ARK Innovation. It soared and now it's tumbling lower. How unusual is what we're seeing? To examine that, I calculated the rolling 12-mo. excess returns (vs. their prospectus benchmark) of 6,800+ equity funds from 1/1/96-12/31/21.
— Jeffrey Ptak (@syouth1) January 18, 2022
ETF Chart of the Week: 2021’s net growth in global ETF count (ETF launches minus closures) was 1,239. That was nearly twice the previous record of 656, set in 2010. As Bloomberg’s Eric Balchunas points out, “The ETF structure just seems to be getting hotter as a destination for money.”
Source: Financial Times’ Steve Johnson
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