The SEC has released its new sets of priorities for 2021. Here they are. Climate & ESG risks, disclosures and policies will be the focus #1. Retail investors, seniors, retirement savors: Reg BI and Fiduciary Duty compliance Information Security & Operational...
The cash vs. ETF arbitrageThe creation & redemption process allows a trader (an authorized participant) to obtain or get rid of ETFs easily and at virtually no cost. From the composition, they can calculate the value of the ETF at any time with great accuracy. The...
Index providers provide research with some discretion on trillions of assets. They move markets. Their errors are costly.
Should those ‘data providers’ become ‘investment advisors’? The SEC is considering it. Two academics explain why and how this should be implemented.
The ETF creation-redemption processYou can’t talk about ETFs without mentioning the creation-redemption process, which is quite unique in the fund management space. A practical exampleHere is a practical example of the creation redemption process. Let’s say that you...
How can you use ETFs? A wide diversity permits many applications.ETFs track an index, and there is a plethora of indices. Plus tracking an index is easy and can be mostly automated. Low Costs The costs of investing into an ETF are really cheap. Because you buy your...
Definition and history of ETFsIntroduction - What is an ETF An ETF is an “exchange-traded fund”, in other words, a 1933 act fund (like those you find in your Vanguard or Fidelity retirement accounts), but whose units happen to be listed on a stock exchange like a...
‘When you combine ignorance and leverage, you get some pretty interesting results.” Warren Buffett
Three good notes from the derivatives research teams of Morgan Stanley, Société Générale, and Nomura point to a potential squeeze in the VIX, as a result of the increasing retail activism. This technical post explains the contents of the research papers. Spoiler alert, yes, the VIX is prone to a squeeze.
RealVision interview video, May 19th, 2020
A good piece on the history of ETNs, who are in period of lackluster growth / demotion / regulatory pressure, unlike ETFs.
ETNs’ complexity makes them interesting for professionals, but unfortunately extremely dangerous for most investors as well. No, XIV is not a company…
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