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IWF Forum Topics
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- General Discussion on IWF
- Short Cut to Profits? A Closer Look at Inverse Funds [view article]
- 36-Month ETF Correlations with Russell 3000 [view article]
- ETF Industry Data Summary: 1H'08 [view article]
- Fees and ETFs: Will Vanguard Become the Dominant Player? [view article]
- ETF Top 10 Lists: Fastest Growing, Largest By Net Assets, Top Providers [view article]
- Exchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
- ETF Fund Revenues: A View from the Bottom [view article]
- Top 50 ETFs by Revenue Per Fund [view article]
- Two Down Days to Start the Week [view article]
- Last Year's Best Stocks Have Been This Year's Worst [view article]
- ETF Fund Flows (Week Ending 2/22/08) [view article]
loading ...Recent IWF Articles
- Short Cut to Profits? A Closer Look at Inverse Funds
- Liquidity Review of U.S. Stock, Sector ETFs
- Is Value Just a Bet on Financials?
- ETF Industry Data Summary: 1H'08
- Fees and ETFs: Will Vanguard Become the Dominant Player?
- Two Down Days to Start the Week
- ETF Fund Revenues: A View from the Bottom
- Top 50 ETFs by Revenue Per Fund
- ETF Fund Flows (Week Ending 3/28/08)
- ETF Fund Flows (Week Ending 2/29/08)
- Full List of Articles »
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Short Cut to Profits? A Closer Look at Inverse Funds [view article]
anyone know how far out banks do profit projections? calculations on what percentage of people will default? i assume its at least 50 yrs? don't they know what to expect? PS-SRS is doing GREAT ReplyDivergence
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
Thanks. Great answer, and I agree with you. ReplyShort Cut to Profits? A Closer Look at Inverse Funds [view article]
Dr. Divergence:This is uncharted territory. Closest example may be the INP exhange traded note from Barclays that stopped issuing creation units when India temporarily stopped certain foreign investments. That went way out of wack.
In this case the instruments used to fund the inverse fund are most likely of definite term, except for their actual stock shorts. The derivatives will expire and the fund will become less short. Until the next report, we won't know how many if any actual stock shorts they have.
Absent actual stock shorts the fund assets will be in run-off and would eventually be all cash or government debt instruments. In a rational world, the price would approach the NAV in that case.
The expectations for future actions by Congress would probably be key, but I have no idea what those actions would be or how the market would respond.
Today when the bailout vote failed the SPY was off nearly 7%.
SKF is up 18+% as of the moment with nearly 16 million volume. XLF is down 11+% with 52 million volume, so the 2x leverage is approximately working for the moment. Reply
Divergence
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
Point taken, Richard. Good article. Do you have any views about the tracking error issue in SKF et al now that they are unable to issue new creation units due to the short ban? ReplyShort Cut to Profits? A Closer Look at Inverse Funds [view article]
Dr DivergenceI said it "exposes" short investor to interest. That is meant to convey that interest "could" be a factor if the trade goes against the investor to create a margin call.
The point is correct about the "potential" for interest cost, which is not a potential cost with a non-margined long position in an inverse fund. Reply
Divergence
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
Your point #6 is factually incorrect. No interest is paid on a short sale. The sale takes place in a margin account and the short SALE generates a free credit in the account. Generally the broker will credit the short selling customer with somewhere from 50% to 70% of the interest earned on the free credit, subject to negotiation based on account size, trading frequency etc. ReplyETF Industry Data Summary: 1H'08 [view article]
I think it is great that more investors are investing in ETFs. I just shows that the market players are becoming increasingly aware of the benefits of ETFs over Mutual Funds and individual stocks. I hope to see the numbers grow over the next few years. ReplyETF Industry Data Summary: 1H'08 [view article]
quick onceover suggests investors are getting more savvyin both diversification, including leveraged funds, bonds, etc
and intolerance to excessive costs (vanguard flies vs bgi, ssga, holdrs; or at fund level: e.g. vwo vs eem)
p.s. freudian slip?
"total ETF asses"?
(paragraph 2) Reply
Fees and ETFs: Will Vanguard Become the Dominant Player? [view article]
I have a few problems with Vanguard. Their advisor website for ETFs took an excellent initial model and destroyed it. It appears they have regressed from an era of Vista/XP backward toward DOS. And the only response to the the question of "who is the genius behind the curtain making such changes" results in politically correct dribble.Second, being a mutual fund company, Vanguard somehow received a "patent" on the process for issuing an ETF share class of an existing mutual fund. Therefore, if other mutual fund providers realize they can capitalize on the shift to a better product for their consumer without cannibalizing their existing business, they have to pay Vanguard to be able to do so??? How could such a patent even be approved?
And where was the SEC in approving Vanguard's ability to even apply for such a patent? No wonder Bernanke wants Christopher "do nothing" Cox to relinquish his seldom used authority to the Fed. One of the other mutual fund families should get a similarly stupid "patent" for issuing "no-load mutual funds" and begin charging Vanguard fees for issuing no-load funds. Wouldn't that simply make Vanguard's expense ratios "more competitively priced" with others in the industry (uttered tongue-in-cheek).
Vanguard has sadly grown into another arrogant, unresponsive corporation (tried their "support" line lately?) who's mission is to dominate the mutual fund/ETF space based upon expense ratios alone. I prefer not to deal with such a commodity-based approach and have returned to iShares, SSgA and a few others for a broader product line, more helpful websites and better trained support staff. I believe a few other advisors will choose not to become "Bogleheads" as well, which just may keep them from becoming "the dominant player" in the ETF space.
I wonder if I can get a patent on breathing air.... Reply
ETF Top 10 Lists: Fastest Growing, Largest By Net Assets, Top Providers [view article]
Usually, i rely on FRC in Boston for ETF research and data... ReplyExchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
can you please update this list? thanks. ReplyTiedeman
ETF Fund Revenues: A View from the Bottom [view article]
Nice data! Thanks! ReplyTop 50 ETFs by Revenue Per Fund [view article]
Does anybody know where I can find a list of all these lists? JJ ReplyTwo Down Days to Start the Week [view article]
Enter your comment herewhat does your top decile look like any new entrants into your host of strong relative strength group performers? Reply
Top 50 ETFs by Revenue Per Fund [view article]
1. I also don't understand what's been gotten at here.2. But I do find lists are often useful. As one example, lists of best performers. Reply