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There are now more ETFs than stocks in the US

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Re: There are now more ETFs than stocks in the US

#21

Post by anonu »

WarmWash wrote: post #7
anonu wrote: post #2

It's an irrelevant point because ETFs incorporate more than just US stocks. You have global stocks (tens of thousands), options (a million expirations), bonds (3 million cusips) , crypto, futures, and the list goes on. And it becomes a combinatorial exercise... The article is pointing out the lack of publicly listed companies in the USA. But we also have private stock in ETFs now. And not to mention a handful of bloc…

I hope to god "investors" don't fall for the "blockbuster" IPO of SPCX. Remember in 2008 when Standard and Poors was giving AAA ratings to junk CDOs at the investment banks behest? SPCX isn't going to collapse the global financial markets, but the exact same shady rules changes and suspect IPO structure reeks of banks trying to pull the wool over retail's eyes.

TSLA was a $60bn company when Musk made his equity milestone deal in 2018. He had a 10 year horizon to 10x TSLA to $650bn. He did it in 2.

SPCX is maybe $1.25tr now - and he has a similar equity milestone deal to just 5x to $7.5tr. Its a big number. For comparison, NVDA is already $5.2tr+

So my guess is people will assume any investment in SPCX will be a 5x return in a short period of time.

Also a company this large will get swept into many indexes, including the S&P500 - so most investors will own it by default.

Re: There are now more ETFs than stocks in the US

#22

Post by john_strinlai »

doubledamio wrote: post #18
john_strinlai wrote: post #6

Earlier quoted context omitted.

i cannot wait for the word "slop" to leave the zeitgeist.

i cannot wait for the word zeitgeist to leave the zeitgeist.

wow you got me, i forgot how zeitgeist is used to describe every single thing people don’t like now adays.

how could i have been so stupid not to see the identical frequency of use between "X slop" and "zeitgeist".

(zeitgeist is in 19 comments this week, we're 3 of them. slop is in 775 comments. most comments containing slop once contain it multiple times, so ~1500+ times)

Re: There are now more ETFs than stocks in the US

#23

Post by oa335 »

jandrewrogers wrote: post #20
oa335 wrote: post #5

The number of ETFs isn't as relevant as the total % of funds invested in passive funds as opposed to single stocks or active funds. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5259427 > Passive capitalization-weighted index funds now surpass active management in aggregate investor allocations. Flows into passive strategies cause unrelated stocks to move synchronously, undermining diversification and potential…

The shift to passive capitalization-weighted indexes may be making it easier for active investors to make money. The massive ballast of passive capital that has predictable reactive behavior provides a small degree of leverage.

100%. i ran a trading desk predicated on this strategy, and know a couple of others who are still successfully running similar strats.

Re: There are now more ETFs than stocks in the US

#24

Post by john_strinlai »

NDlurker wrote: post #11
john_strinlai wrote: post #6

Earlier quoted context omitted.

i cannot wait for the word "slop" to leave the zeitgeist.

I wonder when/where that started. My girlfriend's kid and her friends have been using the word slop for at least the last 5 years to refer to fast food.

i mean, ive heard to for fast food and stuff before.

but someone said "ai slop" once, and now apparently slop is the only term people can think of to describe literally anything of low quality or anything they dont like.

ETF slop. microslop. slop article. self-reinforcing slop. word slop. slop-powered craft. slop-cannon. vibe spaghetti slop. tools slop. llm slop. slop site. slop factories. slop induced tech debt. slop submissions. slop content. intense slop. one-shot slop. slop art. "slop out a blog post about it". slop rewrite. spam-slop. load-bearing slop.

(those are all from the last ~8 hours on this site alone)

there is a bit of irony in the fact that the anti-ai crowd harps on overuse of "not X, but Y" and em-dashes, yet they all use the exact same adjective a half dozen times in every ai-related comment. maybe ai will start overusing the word slop and things will self-correct.

Re: There are now more ETFs than stocks in the US

#25

Post by bfkwlfkjf »

NDlurker wrote: post #11
john_strinlai wrote: post #6

Earlier quoted context omitted.

i cannot wait for the word "slop" to leave the zeitgeist.

I wonder when/where that started. My girlfriend's kid and her friends have been using the word slop for at least the last 5 years to refer to fast food.

So, like "spam".

Theyre both things we consume.

Well not me, but NPCs.

Re: There are now more ETFs than stocks in the US

#26

Post by s1artibartfast »

senordevnyc wrote: post #4
anonu wrote: post #2

It's an irrelevant point because ETFs incorporate more than just US stocks. You have global stocks (tens of thousands), options (a million expirations), bonds (3 million cusips) , crypto, futures, and the list goes on. And it becomes a combinatorial exercise... The article is pointing out the lack of publicly listed companies in the USA. But we also have private stock in ETFs now. And not to mention a handful of bloc…

It also just seems like a bizarre thing to care about. "There are more user playlists on Spotify than songs!" Well yeah, of course there are?

That still tells you information that could be useful or important - That there is a lot of demand for these playlist things. People must be using them opposed to individual songs or albums.

Re: There are now more ETFs than stocks in the US

#27

Post by oa335 »

rwmj wrote: post #14

Question! Is there a counterparty risk with ETFs versus owning the equivalent fund that owns the same underlying stocks? (Assuming there is an ETF and fund that are approximately equivalent.) I trade about once a year, so there's no real benefit to me with ETFs, and I've always preferred funds.

yes, there is counterparty risk with both etfs and mutual funds. in general, stick to the well regarded issuers or fund managers. vanguard is the best imo, they do a lot to protect their shareholders.

Re: There are now more ETFs than stocks in the US

#28

Post by jnwatson »

rwmj wrote: post #14

Question! Is there a counterparty risk with ETFs versus owning the equivalent fund that owns the same underlying stocks? (Assuming there is an ETF and fund that are approximately equivalent.) I trade about once a year, so there's no real benefit to me with ETFs, and I've always preferred funds.

ETFs are supposed to hold the underlying asset, just like mutual funds. In the worst case, you are due your share of the underlying asset.

ETNs (which are sometimes lumped with ETFs but are actually distinct products) have counterparty risk since they aren't required to hold the underlying asset. They are unsecured debt securities issued by a bank.

Re: There are now more ETFs than stocks in the US

#29

Post by Cider9986 »

Fidelity offers something called Fidelity Zero funds which are pretty cool because there is 0% expense ratio. You only want to use them in a tax advantaged account in case you want to move away from Fidelity, other brokerages can't transfer them so you'd have to sell and incur capital gains, unless it's in a tax advantaged account.

FNILX(S&P500) FZIPX(US Mid and Small) FZROX(Total US) and FZILX(International)

It's the ultimate realization of the Bogleheads strategy.

Re: There are now more ETFs than stocks in the US

#30

Post by ASalazarMX »

bfkwlfkjf wrote: post #25
NDlurker wrote: post #11

Earlier quoted context omitted.

I wonder when/where that started. My girlfriend's kid and her friends have been using the word slop for at least the last 5 years to refer to fast food.

So, like "spam". Theyre both things we consume. Well not me, but NPCs.

> Well not me, but NPCs.

I felt personally attacked by your comment, and would spitefully lookup your behavior tree and show it to you... if my behavior tree allowed that.

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