The ETF Files: How the U.S. government inadvertently launched a $3T industry
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Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#2space Aliens?
The CIA has space aliens. My parents are CIA.
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The woman at the dollar store was clarvoyant. I had taken a shit and shit was on my mind, avoiding hand contact. Don't worry I washed them, but the thought was fresh.
God helps by giving clues.
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Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#3Caught this story this morning on Bloomberg's Odd Lots podcast[1], it's a great story. The thread that stands out most to me (and to the hosts) is that here's a person who looks at an 840-page government report, reads it in-depth, and creates an industry. That's a feel-good outcome, of hard work others aren't willing to do.
In a coincidence, perhaps, Planet Money's latest episode[2] dealt with Warren Buffet's bet on an ETF over hedge funds.
1: http://www.bloomberg.com/news/articles/2016-03-07/odd-lots-h...
2: http://www.npr.org/sections/money/2016/03/04/469247400/episo...
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#4That component-index arbitrage is what funds most OCaml development [0].
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#5One big factor in the success of these ETFs is automation (aka HFT). You don't get SPY quoted in size at a penny spread without the massive investments in research and technology on the part of the ETF market makers.
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#6Caught this story this morning on Bloomberg's Odd Lots podcast[1], it's a great story. The thread that stands out most to me (and to the hosts) is that here's a person who looks at an 840-page government report, reads it in-depth, and creates an industry. That's a feel-good outcome, of hard work others aren't willing to do. In a coincidence, perhaps, Planet Money's latest episode[2] dealt with Warren Buffet's bet on…
To be clear, the Warren Buffet bet was about index funds. Not all ETFs track index funds, and even the ones that do aren't necessary. You can just buy into the funds directly.
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#7One big factor in the success of these ETFs is automation (aka HFT). You don't get SPY quoted in size at a penny spread without the massive investments in research and technology on the part of the ETF market makers.
Isn't the big allure of ETFs that you buy and hold for long time periods betting on the market rather than individual stocks and prices?
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#8One big factor in the success of these ETFs is automation (aka HFT). You don't get SPY quoted in size at a penny spread without the massive investments in research and technology on the part of the ETF market makers.
Isn't the big allure of ETFs that you buy and hold for long time periods betting on the market rather than individual stocks and prices?
The value of the ETFs closely follow the value of the indices or securities that the fund was designed to track. It is therefore very important for the two securities to be as synchronized as possible, which is where (some forms of) HFT comes in.
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#9Caught this story this morning on Bloomberg's Odd Lots podcast[1], it's a great story. The thread that stands out most to me (and to the hosts) is that here's a person who looks at an 840-page government report, reads it in-depth, and creates an industry. That's a feel-good outcome, of hard work others aren't willing to do. In a coincidence, perhaps, Planet Money's latest episode[2] dealt with Warren Buffet's bet on…
To be clear, the Warren Buffet bet was about index funds . Not all ETFs track index funds, and even the ones that do aren't necessary. You can just buy into the funds directly.
Indeed, although Buffet did bet on an ETF, which was the index fund SPY.
Re: The ETF Files: How the U.S. government inadvertently launched a $3T industry
#10Earlier quoted context omitted.
Isn't the big allure of ETFs that you buy and hold for long time periods betting on the market rather than individual stocks and prices?
The value of the ETFs closely follow the value of the indices or securities that the fund was designed to track. It is therefore very important for the two securities to be as synchronized as possible, which is where (some forms of) HFT comes in.
Makes sense! You need to minimize tracking error on the underlying basket of assets, and the faster you are the less error you have.