ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 9/28/23; performance data excludes leveraged and inverse products
Weekly ETF Reads
ETF Homework Remains Despite SEC Efforts by Todd Rosenbluth
“Despite their well-intentioned efforts, it will remain paramount for investors to do their homework and look inside the portfolio.”
(Note: VettaFi’s Todd Rosenbluth joined me on this week’s ETF Prime to go in-depth on the SEC’s recent amendments to the so-called “Names Rule”. You can listen to our full conversation here.)
ESG ETFs fail to shine over past 10 years by Steve Johnson
“Real-world ESG performance is unremarkable, with no evidence of sustainable ETFs outperforming.”
Vanguard closes in on iShares’ US ETF crown by Frank Talbot
“In March 2017, Vanguard’s assets were 63% of iShares. Three years later, in March 2020, they had only moved up to 68%. Today – a little over three years later – they are now at 90%.”
Vivek Ramaswamy sells anti-ESG to RIAs to nab quick $1 billion of AUM, but it’s all ‘Kabuki theater,’ analyst says, to steer proxy votes hard right – profitably by Oisin Breen
“Selling an explicitly activist ESG fund labeled as such is fine. Being forced to support stakeholder capitalism in a standard index fund is not.”
When It Comes to Passive Bond ETFs, the Devil Is in the Details by Lan Anh Tran
“Despite being simple to understand, broad-market index funds still require some due diligence by investors.”
BOXX: Access Options Funding Rates in an ETF by Kris Abdelmessih
“Box spreads are the simplest arbitrage identities in the options market.”
Tuttle Capital Embraces Role of ETF Disruptor by Jeff Benjamin
“Whether you like him or hate him, what he’s doing is making something convenient.”
Ark anticipates win in US crypto ETF battle with ‘deepest’ suite, COO says by Ben Strack
“We want to be the crypto solution for the ETF market.”
ETF Tweet of the Week
The big story last week was the SEC expediting the launch of ethereum futures ETFs ahead of an anticipated government shutdown. The agency also accelerated their decision-making (or lack thereof) on spot bitcoin ETF applications, once again kicking the can down the road. Strategas’ Todd Sohn summed-up the current spot bitcoin ETF sentiment quite nicely:
“I’d wager investor and issuer patience is already running thin with regards to that product, so a shutdown adds to the agitation.”
Meanwhile, the SEC has until October 13th to appeal their recent court loss to Grayscale and determine a future course of action. Given the agency is greenlighting ethereum futures ETFs, it seems highly unlikely they will force the closure of bitcoin futures ETFs. That leaves the SEC with two options: 1) approve spot bitcoin ETFs or, 2) come up with another reason to deny them.
However, one prospective spot bitcoin ETF issuer isn’t waiting around to see what happens. Bitwise filed an additional 40+ pages(!) of research with the SEC last week, providing further evidence that “the CME bitcoin futures market leads price discovery over the spot market such that it can serve as a ‘regulated market of significant size’ for the purpose of surveillance” (click the below tweet to read entire thread).
If I’m being honest, it’s all so tiring at this point. The bitcoin futures and spot markets are inextricably intertwined – surprise! It’s unfortunate the hard-working team at Bitwise felt this was necessary.
1/ NEW: Bitwise Spot Bitcoin ETF Update
— Matt Hougan (@Matt_Hougan) September 25, 2023
NYSE today filed an amended application to list the Bitwise Bitcoin ETF Trust, complete with 40+ pages of new research from Bitwise.
The research addresses key concerns the SEC has raised around spot bitcoin ETFs.
Here’s why it matters — pic.twitter.com/RPb7OXRGat
ETF Chart of the Week
Another week, another round of fee cuts from a top ETF issuer. This time, it was Charles Schwab chopping the fees on their High Yield Bond ETF (SCYB) and U.S. TIPS ETF (SCHP). The firm’s entire bond ETF lineup is now priced at 3 basis points. 3 basis points!
“Issuers have no problem exchanging brutal blows on fees, and this is simply the latest example of the mentality needed to survive and thrive in the ETF Terrordome.”
Source: Charles Schwab
