My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
NYSE Lists Its First ETF on the Big Board in 15 Years by Traders Magazine
“By listing on the NYSE, the PIMCO Active Bond Exchange-Traded Fund can take full advantage of the NYSE’s unique floor-based trading model.”
Drawdown reveals risks in widely used ETFs, indexes by Ari Weinberg
“Every decade or so market volatility reveals features of popular equity and fixed-income indexes that may catch even the most sophisticated index investors off guard.”
Investors pump record sums into leveraged ETFs by Steve Johnson
“Globally, investors pumped a net $28.3bn into leveraged and inverse exchange traded funds in the first nine months of the year.”
Volatility shines spotlight on ETFs’ utility by Kathie O’Donnell
“Despite high inflation, central bank rate hikes, and stock and bond market losses, the overall global ETF industry in September saw its 40th straight month of net inflows.”
What FTX Fallout Means for Investors by Evan Harp
“A spot Bitcoin ETF would maintain custody of the assets without trading or lending them out, so it is an entirely different situation than what happened with FTX.”
ETF Tweet of the Week: Last week’s “tweet of the week” featured commentary on the widening discount in the Grayscale Bitcoin Trust (you can read my take on this in two excellent pieces here and here). This week’s concern wasn’t about the discount, but whether the underlying bitcoin held in the trust was actually safe and secure. Grayscale directly addressed that concern below (click tweet to read entire thread). Oh, and… Still. No. Spot. Bitcoin. ETF.
In the wake of recent events, our investors should know that the safety and security of the holdings underlying Grayscale digital asset products are unaffected. 🧵
— Grayscale (@Grayscale) November 16, 2022
ETF Chart of the Week: Out with the old, in with the new. It appears that 2022 will go down as the tipping point for bond ETFs. Investors have plunked over $150 billion into the products – despite the fact that nearly every single one has posted negative returns this year. Meanwhile, investors have yanked nearly $450 billion out of bond mutual funds. Can you say “format change”? This may be the ETF chart of the year!
Source: Bloomberg’s Katie Greifeld
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