Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: ETFs are shutting down at a record clip, but the shakeout is seen by some financial advisers as the natural evolution of a market saturated with too many funds.
What was the saying? "Build it and they will come." Apparently, not in this case.
For me, I staying with mutual funds because etfs have become more of a trading vehicle than an investment vhicle from my perspective. I am concerned that liqudity just might not be there when it is needed the most as the etfs trim their positions in down trending markets. The old market makers had to buy. But, they don't seem to be around much anymore. Wonder why? Now, the flash crowd claims they add liquidity to the markets but when it is needed the most they seem to turn their computers off and move to the side. Again, I wonder what has happened to those market makers that use to be around?
So are things worse for the small retail investor? Or, better?
I'm thinking that the markets today, at times, move so fast that even the flash crowd has to retreat. This indeed concerns me.
WisdomTree is considered one of the better ETF shop. Lately many of their new ETFs are are essentially slice and dice of some index. Wonder what the average holding period of ETFs in general comparing to index funds? Rapid trading is not investing.
Comments
What was the saying? "Build it and they will come." Apparently, not in this case.
For me, I staying with mutual funds because etfs have become more of a trading vehicle than an investment vhicle from my perspective. I am concerned that liqudity just might not be there when it is needed the most as the etfs trim their positions in down trending markets. The old market makers had to buy. But, they don't seem to be around much anymore. Wonder why? Now, the flash crowd claims they add liquidity to the markets but when it is needed the most they seem to turn their computers off and move to the side. Again, I wonder what has happened to those market makers that use to be around?
So are things worse for the small retail investor? Or, better?
I'm thinking that the markets today, at times, move so fast that even the flash crowd has to retreat. This indeed concerns me.