Can ETF white label platforms “steal” your ETF?
As readers know, our firm's mission is to empower investors through education. We live that mission every day. In this piece, we walk through the [...]
How to Launch an ETF with Meb, Patrick, and Wes
Here is a link to our recent chat on The Meb Faber Show regarding the details on how to launch an ETF: This topic is [...]
Can investors beat active mutual funds with Cheap ETFs? Yup!
In this article we discuss the research concerning the question of whether or not investors can beat active mutual funds with cheap ETFs. Are Passive [...]
The Costs and Benefits of Tax-Loss-Harvesting (TLH) Versus an ETF
Recently, we have experienced a rush of questions from investors/clients who seek our opinion on direct indexing/tax-loss-harvesting ("TLH") and how it compares to the potential [...]
Can you convert a mutual fund into an ETF tax efficiently (or an SMA or hedge fund)?
The question we keep getting, in various forms, is the following:
- Can you do a tax-free conversion of a mutual fund into an ETF?
- Can you do a tax-free conversion of SMAs (separately managed accounts) into an ETF?
- Can you do a tax-free conversion of a hedge fund into an ETF?
Long story short, yes, yes, and yes...but it's complicated!
Competition for Attention in the ETF Space
Competition for Attention in the ETF Space Itzhak Ben-David, Francesco Franzoni, Byungwook Kim, and Rabih MoussawiSSRN Working paperA version of this paper can be found hereWant [...]
It Starts with Freedom
A few years ago, before launching our freedom-weighted emerging markets index, I was in a coffee shop where I overheard a group of students talking [...]
How Active Mutual Funds Use ETFs
In this paper we discuss the academic research about how active mutual funds use ETFs for the purpose of improving the operations of the fund, [...]
Do ETFs Adversely Affect Market Quality? Nope.
Intraday Arbitrage Between ETFs and their Underlying Portfolios Box, Davis, Evans, and LynchWorking paperA version of this paper can be found here Editor's note: Seeing how [...]
How Does ETF Liquidity Affect ETF Returns, Volatility, and Tracking Error?
Liquidity risk and exchange-traded fund returns, variances, and tracking errors Kyounghun Bae, Daejin KimJournal of Financial EconomicsA version of this paper can be found hereWant to [...]
Buying Quality: Is the Juice Worth the Squeeze?
Investing is never easy, but some times are easier than others. Buying US government bonds at 10%+ yields when inflation was steadily decreasing in the [...]
Institutional Investment Strategies: Keep it Simple
Institutional Investment Strategy and Manager Choice: A Critique Richard M. EnnisJournal of Portfolio Management A version of this paper can be found hereWant to read our [...]
ETFs and Mutual Funds Should Pay More Attention to Their Investor Base
Investor-Stock Decoupling in Mutual Funds Miguel A. Ferreira, Massimo Massa, Pedro MatosManagement Science, forthcomingA version of this paper can be found here.Want to read our summaries [...]
Effects of Portfolio Construction on the Performance of Style Factor ETFs
This article discusses the research surrounding style factor ETFs, specifically the effects of portfolio construction on their performance. The Effects of Portfolio Construction on the [...]
ETF-prenuers: An Introduction to ETF White Label Services
Interested in starting an ETF? Interested in converting a managed account, hedge fund, or mutual fund into an ETF? Simply want to learn more about [...]
Counterpoint: ETF Activity May Make the Stock Market MORE Efficient
Lawrence Glosten, Suresh Nallareddy, and Yuan ZouManagement Science, forthcomingA version of this paper can be found hereWant to read our summaries of academic finance papers? Check [...]
How to Compute Active Share
In the short video below, I show how to compute Active Share. The accompanying excel file with the formulas can be found here. I start [...]
“Price”, ETFs, and Bond Market Liquidity
Multiple events last year reminded us that “price” is a nebulous concept. The most well-publicized price disagreement came in September of 2019 when the public [...]
Boutique ETF Issuers Finally Get a Break!
Lingchi is the Chinese term for the form of torture we know as “death by 1000 cuts” that was reportedly used from 900 CE until [...]
Are ETFs Really Crushing Mutual Funds?
Peter Thiel has this quote to open his book Zero to One: Every moment in business happens only once. The next Bill Gates will not [...]