241–250 of 279 posts
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Is TQQQ a long-term holding? You could stomach the 80% draw down?
I've been holding it for close to 10 years, it's my best performing holding by a long shot. I like to hold leveraged ETFs in my tax-free investment account and TQQQ along with UPRO are the ETFs of choice for me.
What are the black swan events for those holdings - I assume they can get margin called?
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Would you rather be a dairy cow on a farm owned collectively by the dairy cows, or owned by one billionaire family? Is it that hard to see how that's immediately a huge positive even if you can't identify individual instances of the billionaire abusing their position?
Having seen companies go bust and then the employees discovered their pension was invested in now worthless company stock I oppose all schemes to get people to invest in their own company without having significant control over the direction. (I didn't directly see this - it was before I was born but I meet a relative who worked there for 20 years) Pension laws now do not allow pensions to invest in company stock lik…
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FWIW, I've been using the card since late 2019 and had zero issues with it. There aren't a lot of 2% cards that just straight give you 2% cash back w/o any hoops[1]. The Fidelity card is no muss no fuss for me. 2% just magically appears in my designated Fidelity account at the end of the month. I have not had to interact with Elan customer service, so I can't speak to that. I also don't care about the Fidelity mobile…
I used this card for a few months before usbank launched their smartly card, at which point I moved 100k from fidelity to a usbank IRA and now enjoy 4% cash back.
Not mentioned in any of the coverage I've seen (or the interview with Vanguard's new CEO in the WSJ) is Fidelity. Fidelity used to be known for actively managed funds, but has been eating Vanguard's indexing lunch for the past 10 years or so. Part of this relates to its dominance in workplace accounts, but Vanguard hasn't helped itself with some bad customer-facing software updates and a perception that its service l…
Matt Levine has a bit about the best customer service your broker can provide is not picking up the phone in a crisis. Bad UX is, intentionally or not, consistent with Vanguard's long-term index investing philosophy. Call us? Use our website? Whatever it is you are trying to do, you probably shouldn't be doing that. I kid, but only a little.
The website isn't amazing, but I don't feel like it's terrible either. There's much worse 401k/IRA providers out there.
Not mentioned in any of the coverage I've seen (or the interview with Vanguard's new CEO in the WSJ) is Fidelity. Fidelity used to be known for actively managed funds, but has been eating Vanguard's indexing lunch for the past 10 years or so. Part of this relates to its dominance in workplace accounts, but Vanguard hasn't helped itself with some bad customer-facing software updates and a perception that its service l…
Yeah, as a litmus test of how much they care about their customers try to call in and get something done. Vanguard will throw you into an automated labyrinth with the only exit being a poorly-trained rep in india or pakistan that has no real understanding of what you're trying to do. Their website is complete trash compared to the other big two. Often down, you can only check your balance, etc. Fidelity will within a…
Were you on a plan run through an employer? Or individual?
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Good to know that Elan services the card and is terrible. I’ll avoid
FWIW, I've been using the card since late 2019 and had zero issues with it. There aren't a lot of 2% cards that just straight give you 2% cash back w/o any hoops[1]. The Fidelity card is no muss no fuss for me. 2% just magically appears in my designated Fidelity account at the end of the month. I have not had to interact with Elan customer service, so I can't speak to that. I also don't care about the Fidelity mobile…
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Here's three SEC press releases that seem to indicate there's evidence of illegal front running: https://www.sec.gov/newsroom/press-releases/2021-118 https://www.sec.gov/newsroom/press-releases/2021-186 https://www.sec.gov/newsroom/press-releases/2022-228 Trading ahead of index funds when an index change is announced is front running in my book, but it isn't illegal front running; but I don't consider it less accepta…
All 3 examples you provided are for people trading on material nonpublic information. In other words, some guy working at an asset manger knew they were going to execute trades on behalf of a client, and then made his own trade ahead of that. That's textbook front running, no denying it, but that's not anywhere close to what's happening with "ETF rebalancing" or PFOF. It's perfectly legal, for instance to speculate o…
I never said trading a stock ahead of it being added or removed to the S&P 500, or between the announcement of it being added or removed and index funds actually purchasing it is illegal, immoral, or unfair, or less acceptable than any other trade.
Just that it's front running. And then you asked if there were examples of illegal front running, so I provided those --- which aren't examples of trading ahead of index funds, because trading ahead of index funds isn't illegal.
I'm not really sure what you're asking at this point.
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TBH, I trust vanguard more, even if their website is absolutely worse. There's a saying, 'if you're not the customer, you're the product'. I expect trades on those index funds are getting 'front run' much like robinhood is getting front run. You might have a lower ER but your nav might effectively be higher when buying and lower when selling. Of course, I'm a 'buy and hold' investor so this doesn't really effect me m…
How do you front run a mutual fund? The price is the price.
as a "consumer" of the mutual fund, you can't.
but the mutual fund itself makes large trades: somebody downstream executing those trades or having access to that data could front run.
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This is not what "front running" means.
Yeah duh. I was explaining to the parent.
> Basically every index of any significance is already being monitored and rebalancing effects are "front-run" this way.
> I put the word in quotes, because this is a perfectly legitimate way of front running.
No; it is not "front running."
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The zero commission brokers typically make most of their revenue on net interest margin. PFOF is a smaller portion.
securities lending doesn’t hurt if your clientele likes heavy short-interest-worthy meme stocks