My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
IMF calls on policymakers to re-examine ETF risks by Emma Boyde
“Even though the vehicles are less concerning than their open-ended mutual fund counterparts.”
Bitcoin ETF Case Gives Friends Of Grayscale Another Chance To Show Support by Nina Bambysheva
“Grayscale Investments is expecting to receive widespread support from investors, academics and elsewhere in the crypto industry in its court battle with the SEC.”
Uncertain times drive record flow week for Innovator’s defined outcome ETFs by Kathie O’Donnell
“The firm’s 80 defined outcome ETFs took in $348 million for the week ended Oct. 7, shattering their previous single-week record of $214 million.”
Market sell-off puts mutual funds on track for $1 trillion of outflows in 2022 by Jeff Benjamin
“Bull markets are good for ETFs, but bear markets are great for ETFs.”
Risk parity ETFs: Were they effective in 2022? by Tony Dong
“The most popular risk parity ETF on the market, the RPAR Risk Parity ETF (RPAR), is actually down 28.46% year-to-date.”
Tax Benefits Pass Through in ETF-of-ETFs Structure by Cinthia Murphy
“40 Act ETFs are pass through vehicles when it comes to taxes.”
ETF Tweet of the Week: 2021’s biggest ETF story was the launch of the ProShares Bitcoin Strategy ETF (BITO), the first futures-based bitcoin ETF to come to market (Still. No. Spot. Bitcoin. ETF.). So, what has happened in the year since the product’s debut? An extremely hard crypto winter. In one of the most ill-timed ETF launches ever, BITO has plummeted more than 70%. The good news? The ETF has tracked bitcoin’s spot price pretty effectively.
ProShares Bitcoin Strategy ETF has seen ~$1.8B in cumul. net flows since its 10/18/21 inception, most of it coming in its first few months. Over that span, it's lost ~70% of its value. Hard to think of another fund that has lost ~$1B,in its first year of existence like BITO has. pic.twitter.com/V4KPTO4qz6
— Jeffrey Ptak (@syouth1) October 20, 2022
ETF Chart of the Week: When markets turn volatile, tactical traders attempt to take advantage by using leveraged and inverse ETFs. With the stock and bond market turmoil this year, these products have taken in nearly $25 billion – which already exceeds 2008’s annual record of $17 billion. Usual disclaimer: these are high octane tools that most investors shouldn’t touch with a ten-foot pole (which makes this year’s flows even more impressive… and scary).
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