The News Radar

Timely links to external news and articles, usually valuation related, with occasional commentary.


Originally posted Sunday, 17 July 2022
Wall Street Set for New ETF Gold Rush as Single-Stock Era Begins

The booming world of exchange-traded funds is about to get even more crowded after the very first single-equity ETFs launched Thursday

The eight products from AXS Investments look like the start of a coming invasion of amped-up strategies that will seek to enhance or invert the performance of volatile companies.

“We’re gonna see the floodgate absolutely open with new product launches in this arena,” said Nate Geraci, president of The ETF Store, an advisory firm. “So I think we’re gonna see ETF issuers blanket the market with all varieties of these ETFs: leverage, inverse, options overlays, you name it.”

Commissioner Crenshaw warned about putting the ETFs in the hands of retail traders in particular, saying that it would be challenging for investment advisers to recommend the products while honoring their fiduciary duties.

This is like the moment where you can see a car accident is about to happen. These things are going to be absolutly poisenous for retail traders, but a lot of them are going to eat this up.