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WSJ: Your Fancy, New ETF Might Be a Little Too Fancy
Your Fancy, New ETF Might Be a Little Too Fancy Exchange-traded funds have mostly been great investments, but they are getting too complex for their own good
Its a bit ridiculous. I was conversing with a few friends who are advisors and they were talking about how they are spending a lot of time helping their clients try and even begin to understand these products. and not because they want them to buy them but their clients are inquiring.
IMO turn about is fair play. The industry has spent years purposely complicating their clients portfolios to keep the customer in the dark.
but its crazy, these are technically niche products that 30% of all new etfs are them in 2024 is nuts. although it begs the question of how many new etfs are actually being created. 30% of 500 is less than 20% of 1000.
I've only seen one investing strategy (not mine) work well using complex ETFs ... in this case, levered bull small/mid/QQQ ETFs. And in 2024, those 2-3x ETFs are 'quaint' (and probably safer) than some of the insane Rube-Goldberg-esque garbage being rolled out today...
Comments
IMO turn about is fair play. The industry has spent years purposely complicating their clients portfolios to keep the customer in the dark.
but its crazy, these are technically niche products that 30% of all new etfs are them in 2024 is nuts. although it begs the question of how many new etfs are actually being created. 30% of 500 is less than 20% of 1000.
Another Minsky Moment in the wings waiting for the cue to begin the last act.