A NOTE FROM BOB
Tough week for crypto assets, including crypto ETFs. ProShares Bitcoin Strategy ETF (BITO) down about 9% for the week, Grayscale Bitcoin Trust down about 10%. What's ahead for crypto in 2022? Join me on ETF Edge Monday at 1 PM when my guests will be Ric Edelman, #1 Registered Investment Advisor in the U.S. in 2021, who is out with a new book, The Truth About Crypto. He'll be joined by Matt Hougan, CIO of Bitwise Asset Management, who runs the Bitwise 10 Crypto Index Fund (BITW). ETFedge.cnbc.com.
Tough week for Cathie Wood as well. Her Ark Innovation Fund (ARKK) down about 10% this week. It's about 50% off the highs it hit in February 2021.
A lot of Cathie Wood favorites, like Zoom Video and Palantir, are also in the Renaissance Capital IPO ETF (IPO), which is also down 10% this week. Not surprisingly, it too hit its high in early February last year.
The SPAC ETF (SPAK) also had a rough week, down 5%, but it closed at a new low, the lowest since it went public in late 2020. People interested in SPACs might want to check out this article from one of my favorite financial writers, John Rekenthaller at Morningstar.
Another spot bitcoin ETF gets pushed out. The U.S. Securities and Exchange Commission (SEC) has extended the time period for ruling on NYDIG's proposal for a spot bitcoin exchange-traded fund (ETF) by 60 days in order to have "sufficient time to consider the proposed rule change and any comments received." The SEC commission now has until March 16th to approve or disapprove NYDIG's proposal.
2021 was a good year for actively managed ETFs. More than half of the exchange traded funds launched this year are actively managed. About 60 percent of the nearly 500 ETFs that launched in the U.S. in 2021 are actively managed, according to data from Morningstar Direct. This marks the first year that more active ETFs were launched than index-tracking ETFs, data up to December 15th shows, according to the FT. Still, don't kid yourself: almost all of the $900 billion in ETF inflows last year went into passively managed funds.
Risk parity is off to a rough start. The RPAR Ultra Risk Parity ETF (UPAR), which launched January 4th, has fallen each day this week. UPAR uses leverage to balance risk between four asset classes: TIPS, U.S. Treasuries, global equities, and commodities. The problem: like all risk parity strategies, it tends to suffer outsize losses when markets fall together, which is what happened this week as stocks and bonds both fell. Its sister fund, the RPAR Risk Parity ETF (RPAR), launched in 2019, and it also had a rough week.
For more analysis and actionable insights, catch me live on Mondays at 1 PM ET on ETF Edge. |
KEY STORIES
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| These 20 companies are coming to this index focused on social and environmental good | |||||
| The Transparency Index, which is the basis for a new passive ETF, has unveiled its list of 100 companies for 2022. These names made the list for the first time. | |||||
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| Value, cyclical trades should outperform in 2022 as inflation concerns persist, market analysts say | |||||
| Energy and metals stocks are set to benefit from rising inflation, Astoria Portfolio Advisors CEO John Davi says. | |||||
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| Cathie Wood and China — ETF experts on whether these underperformers could make a 2022 comeback | |||||
| Cathie Wood's Ark Invest and Chinese stocks were two 2021 underperformers, but they could present a buying opportunity. | |||||
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