Sep 11 2021
(Bloomberg) – Welcome to ETF Weekender, your roundup of the most important and interesting stories from the hottest corner of Wall Street.
The week may have been cut short by a vacation, but it still managed to be action-packed, from a crypto sell to a Soros-BlackRock spat and more. Amid economic worries and fears of delta variants, nerves are being displayed everywhere – but despite all the noise, the stock gauges and the ETF market actually seem to be holding up pretty well.
In this week’s edition: Flows Takes Another Milestone, an outspoken strategist says the passive takes control and Janus Henderson goes green.
These are the stories you must read.
600 billion dollars and account
What Happened: Total flows to the U.S. exchange-traded commodity market topped $ 600 billion for the year with more than three months to go. Along the way, the assets of the world’s largest ETF, SPY, surpassed $ 400 billion for the first time.
Why it matters: The latest milestone comes just six weeks after flows broke the annual record of $ 497 billion (set last year). Despite all the drama in the markets this year and the social, economic and political turmoil around the world, the history of ETFs has simply been a deluge of money.
Read it here.
dog gets stirred
What happened: Vince Deluard, a longtime Wall Street analyst, says there is growing evidence that passive funds are distorting markets – and investors should take advantage of it.
Why this is important: see above. Most of those hundreds of billions of dollars go to cheap index ETFs. If Deluard is right and these vehicles disrupt market behavior – and many argue otherwise – then the situation will only get worse.
Read it here.
More ESG, more active
What happened: $ 428 billion asset manager Janus Henderson launched five actively managed ESG ETFs.
Why it matters: Take your pick: 1. The number of actively managed ETFs launched this year continues to double that of their passive rivals. 2. Issuers are still pursuing part of the ESG demand from investors. 3. Janus Henderson believes that successful ESG investing requires active monitoring.
Read it here.
Want more? Weekend reading bonus
Bitcoin ETF Battle in Canada Offers Latecomers American Race Hope. VanEck launches the first Sustainable Muni ETF as a fund that attracts liquidity. Short Term Bond ETF See 25th month of new cash. Patrick O’Shaughnessy on the next big thing in passive investing.
Good Intel: Shroom Boom
An overview of the Bloomberg Intelligence analysis available on the terminal.
The first psychedelic ETF in the United States has struggled since its launch six months ago, but the outlook for the industry looks bright. The Defiance Next Gen Altered Experience ETF (ticker PSY) has been hit by cannabis stocks, lack of drug approvals and late small caps and is down 20% since its launch in March. Still, a similar fund in Canada has shown investors are keeping their faith, as the medicinal mushroom market is expected to grow by around 16% annually over the next six years, according to Data Bridge Market Research.
This fund is a bullish leveraged bet that is seeing a ton of action this year. Investors – or a big investor does – are piling up to follow moves in a sector that is highly exposed to the economic cycle and reopening of trade. With $ 3.1 billion in assets, it is one of the largest leveraged ETFs.
This is the answer. The question identifying this fonds will appear in the next edition. The August 28 question: What is the ETF VanEck Vectors Social Sentiment, ticker BUZZ?
More stories like this are available at bloomberg.com
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