The booming world of exchange-traded funds is about to get even more crowded after the very first single-equity ETFs launched Thursday.
“We’re gonna see the floodgate absolutely open with new product launches in this arena,” said Nate Geraci, president of The ETF Store, an advisory firm. “So I think we’re gonna see ETF issuers blanket the market with all varieties of these ETFs: leverage, inverse, options overlays, you name it.”
SEC Chair Gary Gensler said the products “present particular risk” in a press call this week. Commissioner Caroline Crenshaw called for the agency to adopt new rules that would address potential risks. Yet single-stock products have been able to list in part thanks to rule changes in 2019 and 2020 that allow leveraged and inverse ETFs to launch without first getting the SEC’s approval.
Commissioner Crenshaw warned about putting the ETFs in the hands of retail traders in particular, saying that it would be challenging for investment advisers to recommend the products while honoring their fiduciary duties. The AXS TSLA Bear Daily charges an expense ratio of 1.15%, while the spot borrowing rate for shares of Tesla — a measure of the cost of shorting the stock — currently stands near 0.3%, according to data compiled by S3 Partners. However, the appeal of an ETF like TSLQ lies more in the convenience rather than the cost, Bloomberg Intelligence’s James Seyffart said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla earnings preview: Wall Street braces for 'difficult' second quarterTesla ($TSLA) is expected to report adjusted earnings of $1.86 a share in the second quarter, which would compare with adjusted earnings of $1.45 a share in the second quarter of 2021, according to analysts polled by FactSet.
Read more »
Street Closures Begin For Lollapalooza Weeks Ahead of Chicago's Biggest Music FestivalStreet closures for Lollapalooza have begun in Chicago to prepare for the city’s largest music festival, which is set to take place the last weekend of July.
Read more »
Tonight at 10 on KCAL9: Targeting street takeoversTonight at 10 on KCAL9 and streaming on CBS News LA, joybenedict has a report about street racing sideshows. She did a ride along w/ LASDHQ and will show you what they're doing to stop this deadly problem. Take a look at Joy's preview from the edit bay!
Read more »
Nightmare on Elm Street 3 Freddy Props Sell For Insane Price at Auction35 years after ANightmareOnElmStreet 3: Dream Warriors hit theaters, two Freddy Krueger props have sold for the insane amounts of $16,000 and $6,400.👏
Read more »
Summer Street Styles that Won't Break the Bank 2022 / 2023 » Fashion AllureSummer Street Styles that Won’t Break the Bank bbloggers fbloggers fashionblogger fashionaddict fashiondiaries fashionista styleinspo fashionblog inspo
Read more »