The bounce in the Ten-Year Note lasted all of eight days, implying Treasury rates are about to fall to new lows. Check out my latest update below for a chart that shows how 1.30% is likely, and soon. We can look for a play in interest-rate ETFs to leverage the move, so tune to the Rick’s Picks trading room if you’re interested.
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08292019
Exchange-Traded Funds (ETFs) Equity Side
The number of exchange-traded funds (ETFs) continue to grow at a rapid pace. Currently, there are over 2,200 ETFs in the marketplace with year-to-date inflows of over $70 billion.
A majority of ETF business goes through the New York Stock Exchange. In fact, just last year, trading volume in ETFs went from almost 30 percent to 40 percent.
The exchange-traded fund industry has grown explosively in the past quarter-century. From its modest beginnings in the early 1990s, the SPDR S&P 500 ETF (NYSEMKT:SPY) has gone from $0 to $250 billion in assets under management, bringing the benefits of index investing to millions of investors. Now thousands of ETFs are available, allowing investors to get exposure to just about any financial market across the globe, any niche sector or industry, and any type of asset. Now more than $5 trillion is invested globally using ETFs, and the number is still rising.
As the stock market surges to new record highs, an increasingly popular way to invest has passed a new milestone of its own, with assets under management (AUM) now passing the $4 trillion mark for U.S.-based ETF sponsors, per a report by ETF.com. While strong stock market gains have been a big factor in the rising value of equity ETFs, fixed income ETFs have enjoyed brisk inflows as well.
The growth of ETF assets is breathtaking. It took 8 years for the U.S. ETF industry to reach $1 trillion in assets, but going from $3 trillion to $4 trillion took only 2 years. The ETF market began to take off in earnest after the financial crisis of 2008, as banks began shedding securities from their balance sheets and battered retail investors were eager to find cheap ways to build diversified portfolios
————————Market collapse by a run to get out of their ETF investments.
Imagine a ‘run sell on ETFs’ and the firms then sell stocks to buy ETFs to deliver.
The rhythm is sell ETF, sell stocks to be able to buy ETFs. which causes more ETF selling.
In 1987 it was futures expiration, today it is or the ETF firms that answers the phone.
If they don’t answer the phone?
Have a great day Rick