Keeping Tabs on Actively Managed ETFs and Alpha in the ETF Space [View article]
Please see the following links to our instablog for supplemental charts that were prepared for us by the folks at AdvisorShares ETFs on the topics above:
Michael, well said and thanks for the retort. The most flagrant piece of misinformation in the Bogan report is equating "naked shorting" with an ETF (or equity for that matter) that has a higher short interest than long shares outstanding. Does it happen? You bet it does, every day, with hundreds if not thousands of securities. But naked shorting, and heavy short interest are two completely different things and make all the difference in the world in making an argument such as his. Misusing the term and application of naked shorting just punches holes in the rest of the "research."
Can iShares Stem the Flow of Assets From EEM to Vanguard's VWO? [View article]
Matt great article and insights. Only, in Vanguard's defense, I would argue that the liquidity of VWO has always been there, and only the "trading volume" has been increasing, so as to compete with EEM in that respect.
We generally consider what the issuer calls their strategy, and PIMCO makes no bones in labeling MINT as active, so we would agree with this categorization.
How ETF Options Players Worked Current Rally: Puts, Puts and More Puts [View article]
As a supplement to this article, put buyers have been present now in FXI and EWY (South Korea) as well, in addition to a continuation of XLK put buying.
5 Facts You Should Know About HOLDRS [View article]
Michael, excellent article. I often wonder why HOLDRs still have a respectable amount of assets in the products, and I suspect it's not because they are the best fits for one's portfolio in a given category. Rather, I suspect it's because of misinformation about how the products are structured, symbol and name recognition and familiarity, trading volume (working as a positive), and finally just a reluctance of those who have been trading HOLDRs for the past decade to use a newer, improved ETF as their benchmark core holding or trading tool.
Dividend Based ETFs and New Options Listed on the S&P 500 Dividend Index [View article]
The dividend yields are all ascertained from the individual fact sheets for each ETF from the company websites, on an annualized basis, not Yahoo Finance which can be incomplete at times.
Investing in FaithShares ETFs Requires a Serious Leap of Faith [View article]
True, these funds are rather new to the market and have low market cap, and low average daily trading volume, but that has nothing to do with the true underlying liquidity of the fund. If you need to buy or sell a large notional $ position in any of these funds, it can be achieved with minimal price impact. The underlying baskets are made up largely of heavily traded, large cap stocks. True underlying liquidity, and the amount of volume traded or an ETF's AUM, are not the same.
Dividend Based ETFs and New Options Listed on the S&P 500 Dividend Index [View article]
To avoid confusion, the original title of this article was "Dividend Based ETFs and New Options on the S&P 500 Dividend Index". So to clarify, DVS is not an ETF, but an index which will list options tomorrow. I am hoping that the editorial team makes the proper changes to the title. Thank you.
Dividend Based ETFs and New Options Listed on the S&P 500 Dividend Index [View article]
DVS is not an ETF, it is an INDEX that options will be based on. Please correct the title of this article, not sure why it reads this why. This wasn't the intentions of the original article. I was hoping to highlight the DVS Index, and parlay it into various Dividend based ETFs, like DLN, VIG, etc. Thank you.
Ron, although this may not specifically be the case here, not all ETF splits are designed solely to increase trading volume. The creation/redemption market will be more active and draw more authorized participants if the ETF trades at a lower notional amount. This is because the creation/redemption unit minimums are often in 50,000 or 100,000 share increments, and less capital is tied up with a 50,000 share creation/redemption unit where the ETF trades at say $20 per share as opposed to $100 per share. Any ETF market making firm or Authorized Participant will tell you they can more effectively price and trade a lower priced ETF than a higher priced one simply because of the lesser capital requirements in creations/redemptions, and when the initial "seed capital" is placed, it's obviously more appealing to create a unit of 50,000 shares of a $20 ETF than a $100 one, and hold it on the books until you can get out of the position (ties up less capital). That said, I question why the Old Mutual ETFs didn't launch at $20 initially because although trading volume may increase going forward, liquidity doesn't increase because trading volume and liquidity are not the same. The underlying indexes contain the same securities, and just because spreads on the screens might come in a bit, that still doesn't equate to more liquidity.
As for MacroShares, you have a valid point, but for RevenueShares, their AUM has risen 5 fold to nearly $400 million from $60 million at the time of their split, so it would be hard to argue that it didn't help them in terms of having more authorized participants active in their funds since it's simply cheaper for them to be involved now. Thank you.
Fidelity’s Free ETF Trading Is Actually Bad for Investors [View article]
We hope that Registered Investment Advisors, who pride themselves as being independent free thinkers and fiduciaries, will use the best ETF products that are out there that fit within their customer's portfolio objectives, not simply the ones that are the cheapest to trade on a commissions basis.
Keeping Tabs on Actively Managed ETFs and Alpha in the ETF Space [View article]
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Why an ETF Can’t Collapse [View article]
Low Volume Active ETFs Are Not 'Illiquid' [View article]
Can iShares Stem the Flow of Assets From EEM to Vanguard's VWO? [View article]
Active ETFs: The Month in Focus [View article]
How ETF Options Players Worked Current Rally: Puts, Puts and More Puts [View article]
Keeping Up With the Rapidly Expanding Suite of China ETFs [View article]
5 Facts You Should Know About HOLDRS [View article]
Dividend Based ETFs and New Options Listed on the S&P 500 Dividend Index [View article]
Investing in FaithShares ETFs Requires a Serious Leap of Faith [View article]
Dividend Based ETFs and New Options Listed on the S&P 500 Dividend Index [View article]
Dividend Based ETFs and New Options Listed on the S&P 500 Dividend Index [View article]
'BTW, Have You Seen the ETF of CEFs?' [View article]
GlobalShares FTSE Emerging Markets ETF Undergoes Ill-Advised 5:1 Split [View article]
As for MacroShares, you have a valid point, but for RevenueShares, their AUM has risen 5 fold to nearly $400 million from $60 million at the time of their split, so it would be hard to argue that it didn't help them in terms of having more authorized participants active in their funds since it's simply cheaper for them to be involved now. Thank you.
Fidelity’s Free ETF Trading Is Actually Bad for Investors [View article]