By Mark DeCambre
By comparison, Vanguard’s Total Bond fund charges an expense ratio of 0.04%. However, BND is down 2.2% in the year to date, compared with IVOL and is down 2.3% over the past 12 months, compared with IVOL’s 0.8% gain, not to mention distributions. BNDD only kicked off earlier this week.
Davis said that the important thing to note with her funds is that Quadratic isn’t taking a view on whether the U.S. economy will face a Japan-style era of low economic growth, low inflation and low interest rates, as some buying BNDD might wager.
“Both these fundsare tools…these are Lego building blocks, you can do whatever you want with it or take your own view,” she said, noting that the funds can be paired with investment strategies.
A bet on stock-market bets
Amplify ETFs has launched a fund that aims to offer exposure to the explosion in retail trading. Indeed, more than 10 million new brokerage accounts are estimated to have been opened in the first half of 2021, nearly equaling the total accounts opened last year, according to data from JMP Securities.
The Amplify Digital & Online Trading ETF, ticker BIDS trading on the NYSE Arca, is an index-based ETF that tracks the BlueStar Global E-Brokers and Digital Capital Markets Index. The top five constituents there are Robinhood Markets Inc. /zigman2/quotes/228268942/composite HOOD -3.04% , Charles Schwab /zigman2/quotes/201281754/composite SCHW +1.20% , Coinbase Global /zigman2/quotes/225893452/composite COIN +5.34% , MarketAxess Holdings /zigman2/quotes/202710814/composite MKTX -2.10% , and SoFi Technologies /zigman2/quotes/222838146/composite SOFI +1.21% .
BIDS expense ratio is 0.59%.
Evergrande-inspired dip buying
The data folks at VandaTrack indicated that purchases of ETFs actually saw a pop on Monday and Tuesday amid the fitful rout in the broader market that saw the Dow Jones Industrial Average, the S&P 500 index and the Nasdaq Composite Index all nose dive. The researchers attributed some $3 billion in purchases of ETFs such as the technology-laden Invesco QQQ Trust and SPDR S&P 500 Trust, to bargain hunting after and apparent conviction that equity markets would soon rebound.
“It took a major sell-off in the S&P to awaken retail investors, but they finally made their presence felt on Monday and Tuesday,” wrote analysts Ben Onatibia and Giacomo Pierantoni at VandaTrack in a note.
“In our last note, we argued that retail investors’ appetite to buy the dip was waning. That statement wasn’t completely accurate. They are still more than willing to buy the dip but are demanding larger discounts to deploy their idle cash,” the analysts wrote.
The buying came even amid growing concerns about Evergrande, one of Asia’s biggest property developers and largest issuers of high-yielding junk bonds. The company had borrowed heavily from banks and investors in mainland China, and has had troubles servicing its debts, sparking worries about financial contagion.
Good ETF reads
7 Best Financial ETFs to Buy Now (U.S. News & World Report)