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It's a perennial exercise whenever an asset is mired in a prolonged and deep drawdown: People look at the charts, they go over this or that indicator and they get [...]

Financial heavyweights Stanley Druckenmiller, Greg Coffey, and Thomas Peterffy are part of a $30 million funding round for Reflexivity, an AI market-research firm. Reflexivity, formerly known as Toggle AI, uses a large language model to provide insights into stocks, bonds, and commodities. The company's growth has attracted interest from Wall Street professionals, with clients including Millennium, Soros Fund Management, and ExodusPoint. Peterffy, founder of Interactive Brokers, is excited to integrate Reflexivity's AI capabilities into his platform. [Extracted from the article]

The article discusses the rise of risky ETFs that allow investors to go long on one stock while shorting another, such as MicroStrategy Inc. and JPMorgan Chase & Co. or Netflix Inc. and Comcast Corp. These new ETFs, including Tidal's "Battleshares," use various tools like short sales, swaps, and options to execute these pair trades. While these products are gaining popularity among retail investors, critics question the risks involved and whether investors truly understand them. The ETF industry defends these products as meeting investor demand, especially from stay-at-home traders, with assets in derivatives-based ETFs growing to $300 billion in the past five years. [Extracted from the article]

Bitcoin is approaching $70,000 as speculators eye record highs, with optimism growing around riskier assets and the upcoming US elections. Global liquidity, including stimulus measures from China, is contributing to the positive outlook for Bitcoin and other cryptocurrencies. Vice President Kamala Harris has pledged to support a regulatory framework for cryptocurrencies, addressing concerns in the crypto sector about regulatory clarity. Smaller tokens like Dogecoin and XRP have also seen gains in this market environment. [Extracted from the article]

Pacer ETF Distributors has launched a new ETF called the Pacer Metaurus Nasdaq 100 Dividend Multiplier 600 ETF (ticker QSIX), which offers investors exposure to tech companies in the Nasdaq 100 index while providing increased income from the futures market. The ETF aims to generate six times the dividends that the Nasdaq 100 would typically pay out. Pacer's president, Sean O'Hara, believes that tech giants like Apple and Microsoft will eventually increase their dividend payments. While the Nasdaq 100 currently has a lower dividend yield compared to the S&P 500, investors are increasingly interested in income-generating strategies. However, critics warn that some of these products, including leveraged or inverse single-stock funds, can be risky and may underperform the broader market while charging higher fees. QSIX charges a 0.6% fee, slightly higher than the median rate for all ETFs. Pacer previously launched a similar ETF targeting S&P 500 stocks. [Extracted from the article]

Victor Haghani, the founder of Elm Wealth and a former partner at Long-Term Capital Management, has filed for an ETF called the Elm Market Navigator ETF. The fund would invest in mutual funds and active and passive ETFs, using Elm's "Dynamic Index Investing" strategy. The strategy involves a baseline portfolio of 75% equities and 25% fixed income, which is then rebalanced based on factors such as riskiness. Haghani's firm currently offers investment options through a private fund or separately managed accounts. This move by Haghani is part of a trend of high-profile individuals and research shops launching their own ETFs. [Extracted from the article]

Apollo Global Management and State Street Global Advisors have filed to launch a new credit exchange-traded fund (ETF) that would allow retail investors access to the private-asset market. The fund, called the SPDR SSGA Apollo IG Public & Private Credit ETF, would allocate 80% of net assets to investment-grade securities, including publicly traded debt and private credit, and up to 20% to high-yield bonds. However, the success of the fund depends on the ability of the two firms to prove to regulators that the trading strategy can function smoothly and meet Securities and Exchange Commission guidelines. Challenges include reconciling the liquidity of ETFs with the illiquid nature of private investments and determining fair valuations for rarely traded securities. [Extracted from the article]

Two new thematic ETFs are aiming to attract investors by focusing on energy companies that are benefiting from the artificial intelligence (AI) revolution. The U.S. Electrification ETF, filed by Global X, would track an index of conventional companies in the sector, as well as those involved in alternative or cleaner energy sources and grid infrastructure firms. Another fund, submitted by Tema, would invest in companies "tied to global electrification." While thematic ETFs have fallen out of favor in recent years, the growing power needs of AI data centers and the projected increase in demand for electric vehicles could make these ETFs attractive options. [Extracted from the article]

Wall Street sell-side research firm, Wolfe, is entering the ETF market with the launch of the Simplify Wolfe US Equity 150/50 ETF. The fund uses a proprietary machine-learning algorithm to analyze and identify investments, taking long positions in around 250 equities and short positions in approximately 150. Wolfe's partnership with Simplify allows them to offer alternative exposures to investors who were previously only available to institutional investors. This move reflects a growing trend of strategists, research shops, and money managers entering the ETF space. [Extracted from the article]

The T-REX 2X Long MSTR Daily Target ETF (MSTU) has debuted, offering two times the daily performance of MicroStrategy Inc. shares, making it even more volatile than the previously launched MSTX ETF. MicroStrategy is seen as a proxy for Bitcoin due to its holdings of the digital token. The MSTU ETF is part of a growing market for ETFs that use derivatives to provide amplified returns on single companies. However, these leveraged single-stock ETFs come with risks and potential losses, as highlighted by the US Securities and Exchange Commission. [Extracted from the article]

Intelligent Alpha, a fintech startup, is launching an ETF called the Intelligent Livermore ETF that utilizes chatbot-powered AI tools to mimic the investment strategies of renowned investors like Warren Buffett, Stanley Druckenmiller, and David Tepper. The ETF will be managed by three chatbots named ChatGPT, Gemini, and Claude, which will generate investment ideas based on the personalities of these famous investors. The ETF will invest in 60 to 90 global firms across various sectors and geographies. While the use of AI in investing is still experimental, some hedge funds are already using chatbots for research and investing processes. However, there is little evidence to suggest that AI-selected investments outperform passive investing. The Intelligent Livermore ETF is the first fund launched by Intelligent Alpha, which plans to offer a range of products for both retail and institutional investors. The ETF pays homage to Jesse Livermore, a legendary stock trader, and charges a 0.69% fee. The fund also has human oversight to ensure compliance and regulatory constraints are met. [Extracted from the article]

The Tema Endowment ETF is planning to launch a new investment strategy that mimics the approach of university endowments, including investments in private markets. The ETF will allocate approximately 50% of its holdings to equities or derivatives, 30% to fixed income, and 20% to "other securities," which may include private funds or business-development companies. This move reflects a growing trend of ETF issuers seeking regulatory permission to offer private investments, as retail investors show increasing interest in this asset class. The strategy is inspired by Yale University's successful endowment model, which diversified into private equity, hedge funds, and real estate. [Extracted from the article]

A survey of Bloomberg Terminal subscribers found that investors believe a Kamala Harris victory in the US presidential election would be better for Treasuries and worse for stocks compared to a win for Donald Trump. Half of the participants plan to increase their exposure to equities if Trump wins, while only 28% would do so if Harris becomes president. On the other hand, nearly half of the respondents would reduce their bond exposure in the event of a Trump victory, while 23% would do so if Harris wins. The survey also revealed that most respondents had not yet positioned themselves for the election, and that history shows equities tend to go up regardless of who is in the White House. [Extracted from the article]

Fidelity's high-dividend ETF has been outperforming the S&P 500, thanks in part to its holdings in growth companies like Nvidia, Apple, and Microsoft. The fund's unconventional strategy focuses on dividend-paying companies, including international firms, and avoids those with high payout ratios. It then weights its chosen stocks by market capitalization and reallocates portfolio weights to ensure a balanced yield. This approach has attracted over $1 billion in inflows this year and has resulted in an 18% total return, surpassing the S&P 500's gains. [Extracted from the article]

Industrial ETFs are thriving despite a slowdown in manufacturing activity and uncertainty about consumer demand. The Global X U.S. Infrastructure Development ETF (PAVE) has surpassed Cathie Wood's ARK Innovation ETF (ARKK) as the largest thematic fund, with $7.5 billion in assets. Other industrial-focused ETFs, such as IPAV, MADE, and RSHO, have also been launched recently. The underperformance of tech-focused thematic funds like ARKK has led investors to seek more tangible and safer growth opportunities in the industrial sector. [Extracted from the article]

Rob Arnott, founder of Research Affiliates, is launching an exchange-traded fund (ETF) called the Research Affiliates Deletions ETF. The ETF will buy companies that have recently been removed from major indexes, holding them for about five years or until they reenter a benchmark. Arnott believes that stocks that are added to major indexes tend to be overvalued, while those that are removed are undervalued. His past research shows that these "reject" stocks outperform the market by about 5% annually. The ETF, which will trade under the ticker NIXT, will track an index based on a proprietary methodology and will focus on US micro-, small-, and mid-cap value stocks. Arnott sees the strategy attracting investors who are looking for exposure to firms that index funds might not hold. [Extracted from the article]

Investors added $75 billion to US exchange-traded funds (ETFs) in August, five times more than the same period in 2023. This surge in inflows may contribute to another historic annual cash haul for ETFs, following July's $122 billion intake. The next few months are expected to bring more volatility, with the Federal Reserve's easing cycle, the US presidential election, and year-end tax-loss harvesting and portfolio rebalancing. ETFs have already exceeded the tally for each of the past two years, with $609 billion added in 2024. They are on track to approach or surpass the record $911 billion addition in 2021. ETFs now account for almost a third of total fund assets, with both fixed-income and equity products experiencing strong demand. Bond ETFs have seen a significant boost this year, with $100 billion added in the past three months. Other areas that have seen success include Bitcoin-based ETFs and more complex funds. Tech funds are also attracting cash due to the surge in technology stocks. [Extracted from the article]

Investors added $75 billion to US exchange-traded funds (ETFs) in August 2024, five times more than the same period in 2023. This surge in inflows may contribute to another historic annual cash haul, following July's $122 billion intake. ETFs have already accumulated $609 billion in 2024, surpassing the totals for the past two years. The growth of ETFs reflects bullish appetites across investing styles, with the universe of actively managed ETFs growing by over 30% this year. Both fixed-income and equity products have seen strong demand, with bond ETFs attracting $100 billion over the past three months. Additionally, new Bitcoin-based ETFs and more complex funds have been successful, while tech funds are also experiencing cash inflows. [Extracted from the article]

CME Group Inc. is introducing a smaller Bitcoin futures contract called Bitcoin Friday futures to attract retail investors who may find the exchange's current offerings too expensive. These weekly futures contracts will be priced at one-50th the size of one Bitcoin, making them more accessible to investors. The cash-settled product is set to launch on September 30, pending regulatory approval. CME already offers Bitcoin and Ether futures, as well as smaller "micro" versions of each coin. The introduction of the smaller-sized contract aims to make it more tradeable and require a smaller capital outlay for retail participants. [Extracted from the article]

Bitwise Asset Management, a crypto exchange-traded fund provider based in San Francisco, is acquiring ETC Group, a digital-assets issuer based in London. The terms of the deal were not disclosed, but after the transaction is completed, Bitwise will manage $4.5 billion. ETC Group currently has around $1.1 billion of assets under management. This acquisition is part of a trend of consolidation within the ETF industry, as firms seek to expand internationally and offer a wider range of products to investors. [Extracted from the article]

Defiance, a $1.4 billion asset manager, has launched a new exchange-traded fund (ETF) called the Defiance Daily Target 1.75X Long MSTR ETF. This ETF aims to provide daily leveraged returns on MicroStrategy Inc., a stock that is seen as a Bitcoin proxy due to its holdings of the digital token. The ETF is expected to be the most volatile in the US market, with a 90-day volatility of about 97%. While leveraged single-stock ETFs have faced criticism from the US Securities and Exchange Commission, they have gained popularity and assets have nearly doubled in the past two quarters. However, these funds can also compound losses. Defiance has also recently launched other thematic ETFs and plans to introduce more in the future. [Extracted from the article]

Investors have withdrawn over $400 million from the WisdomTree Japan Hedged Equity Fund (DXJ), a Japan-focused stock ETF that hedges against moves in the yen. This outflow of cash is the largest since 2018 and comes after the Bank of Japan unexpectedly raised interest rates, causing the yen to appreciate and Japanese equities to plummet. The DXJ has lost 10% since the end of July and is on track for its worst month of outflows since December 2018. The impact of the yen's strength on Japanese equities is negative, affecting earnings and potential market share. [Extracted from the article]

Investors are pulling billions of dollars from the iShares Russell 2000 ETF as the anticipated rotation into smaller firms loses momentum. The same stocks that had been gaining investor interest are now experiencing a mass exodus as expectations for US economic growth are being recalibrated. Short interest in the fund has spiked to its highest level since December, indicating that many believe the worst of the selloff is yet to come. This pullout follows a period of increased investment in small-cap firms, driven by expectations of lower interest rates. However, a weaker-than-expected July jobs report has reignited fears about the health of the US economy, leading to a decline in the Russell 2000 index. Traders have also withdrawn cash from other risk-on assets, such as high-yield corporate bonds and emerging markets. The S&P 500, on the other hand, has remained relatively stable. The recent weakness in labor market indicators has created uncertainty about the economic outlook, causing investors to favor larger-cap stocks. [Extracted from the article]

BlackRock, the world's largest asset manager, has filed for three new exchange-traded funds (ETFs) that would allow investors to either invest in or avoid the biggest tech firms. The iShares Nasdaq Top 30 Stocks ETF and the iShares Top 20 U.S. Stocks ETF would offer exposure to the largest stocks within the tech gauge and the S&P 500, respectively. The iShares Nasdaq-100 ex Top 30 ETF would track an index composed of smaller tech firms, allowing investors to capture their potential growth while avoiding the larger companies. This move comes amid concerns about stock-market concentration risk and the dominance of a few equities in driving market gains. [Extracted from the article]

Cathie Wood, the founder of Ark Investment Management, purchased shares of tech companies such as Amazon, Advanced Micro Devices, and Roku during a market downturn. This came as her flagship fund, ARK Innovation ETF, reached its lowest point of the year. The purchases were made in response to concerns about the economy following weaker-than-expected US employment data. Despite her success in 2020, Wood has faced challenges in recent years, with her funds experiencing significant outflows in 2021 and 2022. [Extracted from the article]

ETFs that track the Chicago Board Options Exchange Volatility Index (VIX) have seen a resurgence in popularity as the stock market experiences rapid fluctuations. The ProShares Short VIX Short-Term Futures ETF (SVXY) attracted $233 million in investments as equities tumbled on Monday, while the 2x Long VIX Futures ETF (UVIX) saw record trading volume and an 84% surge. However, the volatility of these funds highlights the risk involved in investing in them, as their performance is difficult to predict. The interest in these funds reflects growing uncertainty about the direction of the stock market. [Extracted from the article]

Global stock markets experienced a significant selloff on Monday, with the Nikkei down 12% in Tokyo, the Kospi sinking 9% in Seoul, and the Nasdaq plunging 6% in New York. This sudden downturn has shaken the assumptions that had supported financial-market gains, such as the belief in the unstoppable US economy and the rapid revolution of artificial intelligence in business. The recent evidence, including weak US jobs reports and underwhelming AI-driven earnings from Big Tech, has undermined these assumptions. As a result, $6.4 trillion has been erased from global stock markets in just three weeks. This market panic poses risks to the financial system and could potentially push the global economy into a recession. Calls have been made for the Federal Reserve to cut interest rates to mitigate these risks. However, it is important to note that similar market panics have occurred in the past without leading to economic downturns. The recent shift in sentiment across global markets has disrupted the usual late-summer lull and caused significant turmoil. [Extracted from the article]

Investors who bet on a rebound in tech stocks by investing in leveraged ETFs are now facing significant losses as the market experiences a downturn. Despite the decline in the Nasdaq 100 Index, funds with exposure to companies like Nvidia and Intel continued to attract cash, suggesting that investors believed the slump would be short-lived. However, these ETFs are now experiencing double-digit drops as investors seek safer havens, increasing the risk of further declines if investors start selling. The swift shift in sentiment, along with concerns about an economic downturn and disappointing earnings reports from tech giants, has contributed to the current market volatility. [Extracted from the article]

Major money managers, including BlackRock and Invesco, are racing to combine ETFs with private markets, aiming to open up this closed-off world to a wider range of investors. However, there are technical and regulatory hurdles to overcome before real estate and pre-public companies can be included in ETFs. The challenge lies in the liquidity mismatch between the assets and the vehicle, as ETFs are highly liquid while private investments are illiquid. Despite these challenges, the potential for ETFs to offer exposure to private assets is seen as important for investors in the future. [Extracted from the article]

Economist Nouriel Roubini, known as "Dr. Doom" for his accurate predictions of the 2008 financial crisis, is planning to launch his first ETF. The Atlas America Fund, in which Roubini would be one of three portfolio managers, aims to generate stable returns with low volatility and limited correlation to broader equity markets. Roubini is joining a growing list of economists and investors who have attached their names to ETFs. He is also the co-founder of Atlas Capital Team, which develops investing strategies to protect against high-risk regimes. [Extracted from the article]

Asset managers are rushing to create new products for the digital-asset class after US regulators approved Ether ETFs. ProShares has updated its prospectus for six funds that go long or short Bitcoin or Ether, while Hashdex is looking to package both tokens into one investment box. VanEck is hoping to debut an ETF based on Solana, and the ETF product machine is looking to churn out a slew of new crypto instruments. Despite potential regulatory concerns, Bitcoin funds are among the biggest ETFs receiving inflows this year. [Extracted from the article]

Asset managers are rushing to create new exchange-traded funds (ETFs) for cryptocurrencies following the approval of Ether ETFs by US regulators. ProShares has submitted paperwork for six funds that would track Bitcoin or Ether, while Hashdex is looking to package both tokens into one investment box. The success of Bitcoin and Ether ETFs this year has surprised analysts, with the funds receiving stronger inflows than expected. The approval of these ETFs signals a softening in US regulatory climate for the digital-asset sector, encouraging asset managers to become more creative. [Extracted from the article]

The first US exchange-traded funds (ETFs) that directly invest in Ether, the cryptocurrency of the Ethereum blockchain, had a strong debut with over $1 billion in shares traded. While this is lower than the trading volume of spot-Bitcoin ETFs launched in January, it is still considered a robust start. BlackRock's iShares Ethereum Trust ETF and Grayscale's Ethereum Trust were among the top performers, with high trading values. Analysts have varying forecasts for the amount of cash that Ether funds could attract, with estimates ranging from $3.2 billion to $6.4 billion. The adoption of Ether ETFs may be quicker due to investors' previous experience with Bitcoin funds. However, Bitcoin's first-mover advantage and existing allocations to Bitcoin ETFs may limit the potential for Ether fund flows. The price of Ether remained relatively stable during this period. [Extracted from the article]

The first US exchange-traded funds (ETFs) that directly invest in Ether, the cryptocurrency of the Ethereum network, have seen strong trading volumes on their debut. Over $500 million worth of shares were traded across nine ETFs in the first few hours after the market opened. While this is lower than the trading volume of spot-Bitcoin ETFs launched in January, it is still considered a strong start. Analysts have varying forecasts for the amount of cash these Ether funds could attract, with estimates ranging from $3.2 billion to $6.4 billion in one-year flows. The popularity of Bitcoin ETFs earlier this year may accelerate investor adoption of Ether ETFs. However, some analysts believe that Bitcoin's first-mover advantage and its status as "digital gold" may limit the potential for Ether fund flows. [Extracted from the article]

Several asset management firms, including BlackRock, Fidelity Investments, Invesco, and Bitwise Asset Management, have submitted paperwork to the Securities and Exchange Commission (SEC) outlining the fees they would charge for their respective Ether exchange-traded funds (ETFs). The proposed fees range from 0.19% to 2.5%. The battle for potential Ether ETF assets is heating up, with the funds expected to launch soon pending final approval from the SEC. These ETFs could attract between $4.7 billion to $5.4 billion in inflows in the six months after their debut, according to Citigroup. [Extracted from the article]

BlackRock, the world's largest asset manager, predicts that global assets in actively managed exchange-traded funds (ETFs) could reach $4 trillion by 2030, up from the current $920 billion. Factors contributing to this growth include regulatory changes in the US, the availability of ready-made portfolios for advisers, and the increasing number of self-directed investors. BlackRock, which currently has $26 billion in US active ETFs, aims to expand its presence in this market. The company's previous predictions about the fund industry have been accurate, such as the projection that bond ETFs would reach $2 trillion within five years, which they have surpassed. While active ETFs have gained popularity, they still represent a small fraction of the overall global market. However, active strategies have accounted for over 60% of new fund launches in the past four years and have attracted a quarter of all ETF inflows in the US. BlackRock expects the growth of active ETFs to continue due to factors such as the 2019 ETF rule, which facilitated fund launches, and the increasing ownership of active ETFs by retail investors. Additionally, the use of tailor-made strategies, known as model portfolios, by advisers is driving the growth of active ETFs. [Extracted from the article]

BlackRock, the world's largest asset manager, predicts that global assets in actively managed exchange-traded funds (ETFs) could reach $4 trillion by 2030, up from the current $920 billion. Factors contributing to this growth include regulatory changes in the US, the availability of ready-made portfolios for advisers, and the increasing number of self-directed investors. BlackRock, which currently has $26 billion in US active ETFs, aims to expand its presence in this market. The company's previous predictions about the fund industry, such as the growth of bond ETFs, have proven accurate. While active ETFs make up a small portion of the global market, they have been gaining popularity, with more than 60% of new fund launches in the past four years being active strategies. The 2019 ETF rule, which eased market entry and disclosure requirements, is expected to further drive the growth of active ETFs. Retail investors and the use of tailor-made strategies, such as model portfolios, are also significant drivers of this trend. [Extracted from the article]

The article discusses the potential impact of a broadening stock rally on index-tracking investors. While a broader rally would benefit active managers and macro bulls, it could pose challenges for investors who have invested billions of dollars in index-tracking vehicles. These vehicles, such as ETFs, are heavily exposed to a small group of large-cap tech stocks that have been driving the market's gains. The article highlights the risks associated with this concentration and the potential for a shift in market dynamics if there is a rotation away from these stocks. [Extracted from the article]

Crypto trading platform Abra has acquired several private cryptocurrency trusts from Valkyrie Investments. The deal includes trusts for Tron and Zilliqa, as well as several trusts that have not yet been launched. Abra may consider making some of the trusts publicly traded in the future. Abra recently settled with 25 US state financial regulators for operating without appropriate licenses and will return $82.1 million in cryptoassets to US customers. Valkyrie has been offloading portions of its business, including its primary exchange-traded funds business, and its co-founder and CEO resigned last month. [Extracted from the article]

Crypto trading platform Abra has acquired several private cryptocurrency trusts from Valkyrie Investments. The deal includes trusts for Tron and Zilliqa, as well as several trusts that have not yet been launched. Abra may consider making some of the trusts publicly traded in the future. Abra recently settled with 25 US state financial regulators for operating without appropriate licenses and will return $82.1 million in cryptoassets to US customers. Valkyrie has been offloading portions of its business and its co-founder and CEO resigned last month. [Extracted from the article]

The recent broadening of the stock market rally has implications for both active managers and index-tracking investors. While skeptics have long desired a more diverse list of winners, this poses a risk for passive investors who have invested billions of dollars in index-tracking vehicles. The dominance of a few large-cap stocks in these funds makes them vulnerable to a correction in those stocks. Currently, five ETFs tied to the S&P 500 or Nasdaq 100 have over $200 billion in assets, collectively representing a quarter of the US ETF market. The recent rotation in the market has highlighted the discrepancy between large and small-cap stocks, with the S&P 500 underperforming an equal-weighted measure of the same companies. The concentration of market leadership in a few mega-cap tech stocks has not deterred investors from pouring more money into them. However, a shift towards riskier equities could change the trading landscape on Wall Street. [Extracted from the article]

Actively managed non-transparent ETFs, also known as semi-transparent funds, have struggled to gain traction in the US ETF industry. Since 2020, these funds have only accumulated $9 billion in assets, accounting for just over 1% of total assets in actively managed exchange-traded funds. In contrast, active ETFs as a whole have accounted for over 60% of new fund launches in the past four years and have garnered a quarter of all ETF inflows in the US over the past year. The lack of transparency and higher fees associated with semi-transparent funds have been cited as reasons for their limited success. Some fund managers have been converting their semi-transparent ETFs to more transparent wrappers or closing them altogether. [Extracted from the article]

Nvidia has surpassed Tesla as the dominant stock in single-stock exchange-traded funds (ETFs) due to the booming artificial intelligence industry. Nvidia now represents over half of all assets in single-stock ETFs, totaling over $6 billion. On the other hand, Tesla-centric funds make up only a fifth of the sector, down from two-thirds the previous year. The popularity of Nvidia-focused ETFs has surged, with $4.4 billion invested this year, compared to $1 billion in Tesla-focused funds. Single-stock ETFs, which offer amplified returns on specific companies, have become popular among day traders. [Extracted from the article]