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Ron Rowland: ETF Deathwatch for October 2015

edited October 2015 in The Bullpen
http://investwithanedge.com/etf-deathwatch-for-october-2015-the-zombies-among-us

"If you own one of these Zombie ETFs, who is going to buy it from you when you are ready to sell? Another problem with low volume ETFs and ETNs is that keeping the trading price aligned with their underlying net asset value (“NAV”) becomes much more difficult. The creation and redemption mechanism that keeps the trading price of ETFs close to their NAVs typically requires 50,000 shares. The average ETF on this list only trades about 1,000 shares per day, so building a creation-redemption block would require more than two months of trading volume. Good luck trying to find a buyer at a fair price."

Ted would have undoubtedly posted this, so........ get better soon, Ted.
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