My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
High yield ETF influence on underlying bond market jumps by Emma Boyde
“ETFs are a central and catalysing force in the modernisation of the bond markets.”
Is Direct Indexing Better than ETFs? by Allan Roth
“Direct indexing is good. It’s just generally not as good as owning broad ETFs.”
Sleepy Bank ETFs Roar to Life Amid SVB Contagion Fears by Katie Greifeld
“That surge in volume highlights an often touted key feature of ETFs: their usefulness as trading tools.”
‘Go-to place to get liquidity’: ETF efficiency amid the SVB collapse by Kevin Schmidt
“People look at the ETF as a price discovery tool.”
GBTC jumps this week while Grayscale CEO ‘encouraged’ after oral arguments in court battle with SEC over spot bitcoin ETF by Christine Idzelis
“The investment vehicle would stop trading at a discount to holdings after converting to an ETF.”
Actively managed ETFs continue to rake in cash, Morningstar report shows by Kathie O’Donnell
“We can see there is now demand for ETFs the vehicle, not just for the index strategies that they traditionally harbor.”
ETF Tweet of the Week: With everything happening in the banking sector right now, here’s a friendly reminder regarding Exchange Traded Notes (ETNs)…
Friendly reminder that if you own an ETN (exchange traded note), you have bank counter-party risk.
— Phil Bak 🎩 (@philbak1) March 16, 2023
Every ETF has the underlying assets custodied in full. ETNs do not, they are index-linked debt, meaning ETNs have default risk.
ETF Chart of the Week: Less than $25 billion has flowed into stock ETFs so far in 2023, which is well off the pace of recent years. Despite the S&P 500 being up 2% (and international stocks up slightly as well), investors are taking a much more cautious approach – particularly in light of the recent banking crisis.