There are now more ETFs than stocks in the US
1–10 of 38 posts
Re: There are now more ETFs than stocks in the US
#2It'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 blockbuster IPOs on the horizon, like SPCX.
Re: There are now more ETFs than stocks in the US
#3Also worth your consideration:
The Rise of ETF Slop - Ben Felix https://www.youtube.com/watch?v=14V7q4gHKFo
Re: There are now more ETFs than stocks in the US
#4It'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?
Re: There are now more ETFs than stocks in the US
#5The 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 potentially increasing systemic risk. New flows into passive products mechanically overweight overvalued stocks and underweight undervalued stocks due to market-price weighting, exacerbating momentum-driven price distortions. Rebalancing at the stock level to non-price-based anchor weights may mitigate these distortions and enhance long-term returns.
This is likely why large-cap stocks have outperformed over past decade.
Re: There are now more ETFs than stocks in the US
#6Also worth your consideration: The Rise of ETF Slop - Ben Felix https://www.youtube.com/watch?v=14V7q4gHKFo
i cannot wait for the word "slop" to leave the zeitgeist.
Re: There are now more ETFs than stocks in the US
#7It'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.
Re: There are now more ETFs than stocks in the US
#8Re: There are now more ETFs than stocks in the US
#9Re: There are now more ETFs than stocks in the US
#10It is interesting and probably bad, however the problem is in practice exaggerated. That is because there are a long tail of ETFs with basically no AUM which get included.
Slicing at $1B AUM gets you down to about 1500 ETFs, and $10B AUM down to 350.
Avoid leveraged, inverse, active, and small ETFs as an investor and you'll be fine.
Apollo makes most of their money in private markets so they are happy to post public market FUD.