ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 9/21/23; performance data excludes leveraged and inverse products
Weekly ETF Reads
You Might Be Paying Too Much for That Index Fund by Jack Pitcher
“It is hell for issuers, but heaven for investors.”
Cathie Wood’s Ark Investment Management buys Rize ETF as it pushes into Europe by Sally Hickey, Chris Flood, & Emma Boyde
“The top question we have received from investors is ‘why can’t we access your strategies in Europe’”.
Can smart beta ETFs return to prime time? by David Mann
“For investors who prefer the active management aspect, it is very possible that this year’s rise in active ETF assets has come at the expense of smart beta ETFs.”
BlackRock, State Street Among Money Managers Closing ESG Funds by Silla Brush
“More US sustainable funds have closed in 2023 than the prior three years combined.”
How T+1 Impacts the Global ETF Ecosystem by Antonette Kleiser & Chris Pigott
“Creation and redemptions will become more complex for U.S. ETFs with global holdings.”
Uranium prices are still ‘nowhere near the peak of the last cycle’: Here’s why nuclear energy ETFs could power your portfolio by Isabel Wang
“Despite the recent outperformance of uranium-related ETFs, the funds haven’t recorded significant inflows so far this year.”
Securities lending earnings dwarf fees in some ETFs by Steve Johnson
“Every fraction of a basis point counts and if we have an opportunity to return some money to our shareholders we will do that.”
ETF Tweet of the Week
As always, a little ETF education goes a long way. Not only does Roundhill’s Will Hershey lay out the basics of ETF creation and redemption, but he also explains the potential underlying market dynamics involved with swap-based ETFs such as the Roundhill Cannabis ETF (WEED).
As an aside, cannabis ETFs have experienced an interesting 2023. WEED is now up nearly 9% for the year after being down as much as 35% less than a month ago. Since the end of August, WEED has soared 65%+ on optimism that marijuana could be reclassified from Schedule I to Schedule III of the Controlled Substances Act. There is also recent momentum around the Senate potentially passing a revised version of the SAFE Banking Act, which would allow cannabis companies to access traditional banking services.
Although cannabis ETFs like ours have been around for several years now, there still appears to be some confusion as it relates to their impact on the underlying stocks, in particular U.S. plant touching names that are held on swap. Here’s my best attempt to explain:
— Will Hershey (@maybebullish) September 16, 2023
In a…
ETF Chart of the Week
Since the Fed first hiked interest rates in March of last year, over $800 billion has gone into equity and fixed income ETFs. Meanwhile, nearly $1.2 trillion has flowed out of equity and fixed income mutual funds. That’s a massive $2 trillion swing in investment vehicles if you’re keeping track at home.
Source: Strategas’ Todd Sohn
