Yo Sweep! Did you write this article?

https://seekingalpha.com/article/4136032-caveat-investor-etf-risk

Is this your beef with ETFs?

(and @S2000 - what is the plural of “ETF”?)

I only had time to skim it but that’s pretty close to what been itching my craw about ETFs. They will destroy us. Just wait…

This guy used two words with different meanings, “imminent” and “immanent”, in the article. However, he seems to have used “immanent” when he actually meant “imminent”. S2000 is going to be all over this in 3… 2… 1…

Also, is it just me, or did he spend a really long time to say not much…

Plural is ETFs. You would not use an apostrophe. Just like two Certified Public Accountants are CPAs. However, I believe if you have only a single letter (I got 2 B’s on my report card), you would use the apostrophe.

Check out the book, “Eats, Shoots and Leaves”. Great book on grammar.

https://www.grammarly.com/

That’s better.

ETFs.

He pretty much lost credibility when he demonstrated that he doesn’t know what portfolio insurance is.

during a firesale, etfs may experience a firesale? That was my take away

i remember a young STL promised to write about the dangers of ETFs in the investment forum but he never did.

sigh T_T

If you hide all of your ETFs then you won’t have to worry if they crash :bulb:

That wasn’t that long ago. And I don’t remember saying anything about when I’d write it.

Dealing with atush is a full time job.

I’m not sure that I understand the article.

If I understand correctly - If all ETF holders sell at the same time, then the ETF market-makers will have to sell the ETF underlying holdings to meet cash calls. This will cause the ETF price to drop, and the underlying holdings to drop, and there will be a downward spiral that will bankrupt the nation, the world, and the known universe.

This brings up two questions: 1.) I thought that this was the beauty of the ETF–that it was a separate vehicle, and that being able to arbitrage the ETF would keep it in line with the underlying, and 2.) If it is true, then how is it different from a mutual fund?

i think the big issue is ETFs that hold less liquid securities

lol

haha i love it! i see no problem with etfs. they are the superior vehicle. i agree with igor as well. for the most part the issue is with illiquid shit like long term or high yield bonds.