Fintoo’s Post

#Fintoo Market Morning Notes 27th September 2024 🗓️ Markets ended green on Thursday resulted in a 6th straight day of gains for the Nifty. However, a divergence on the momentum indicator suggests that caution is needed. The Nifty ETF has been portraying elevated risk as a move below 25,800 would be confirming completion of rising wedge setup thus opening for downside potential of 11%. 💹 . . . 🖋️Read here for a complete analysis 👇: https://bit.ly/3Bk3Cbr #stockstowatch #stockmarketindia #AskFintoo #marketupdate #dailystockmarket #TradingTips #StockoftheDay #StocksToBuy #StocksInFocus #StockMarket #GIFTNIFTY #stockstotrade

Chart tells the story which vast amount of data/information misses to tell. The post below in early 2024 show divergence in performance of NIFTY IT and the US Technolgy ETF(XLK) , with the possibility of outperformance of NIFTY IT over XLK https://lnkd.in/dd-AJYew Few months down the line, NIFTY IT had outperformed and mean reverted to the levels of XLK ( US ETF), as could be seen in the chart below.

Money market ETFs are, in general, very liquid (you can pull your money out by selling your ETF holdings and have the funds in your checking account within 1 to 3 days) and safe (there’s hardly any price risk). SGOV, TFLO, and USFR, three big representatives of the world of money market ETFs, are superbly liquid and pay a fair market interest rate of currently more than 5 and a quarter percent annualized. But which one should you pick, if any of them at all? See my guiding article for you: https://lnkd.in/e4d6hqpB #BestMoneyMarketETF #IdleCash

Humans Love Cash... With an FOMC meeting on-deck, we refreshed one of our favorite structural charts today… over the last 40-years, money market funds - the most “pedestrian” vehicle within the asset management industry - have the highest cumulative net inflows ($4.2 Trillion) when compared to equity and fixed income fund vehicles. Of course, there are mechanical reasons that hinder overall equity flows (e.g. mutual fund to ETF swap), but we’re still amazed by the trajectory. Isolating each wrapper shows equity ETFs at a similar level to money market funds, but our overall takeaway remains the same: humans love cash, especially at 5% rates after a decade of largely nothing. Keep in mind though, opportunity cost is a threat – since March ’22 Fed liftoff the S&P 500 is up 27.0% while a 0-3 month T-Bill ETF is up 9.3% (data through 6/10/24).

Honored to be quoted with Vanguard’s Daniel Shaykevich in this The Wall Street Journal article on #activemanagement #fixedincome #ETFs. https://lnkd.in/ggnyBVUz At VettaFi we love to connect with asset managers of all sizes to help them drive growth and build their business. To learn more about how VettaFi can support your product and distribution growth strategies, please get in touch: https://lnkd.in/ehxiXJB3" Todd Rosenbluth, head of research at VettaFi, said that the higher yields on even relatively low-risk actively managed bond ETFs were likely to continue attracting investors worried about navigating the markets if and when the Fed starts lowering rates. Rate cuts that went beyond what investors are currently expecting would boost bond prices by making existing debt with higher payouts more appealing to investors. Because it’s unclear if and when the Fed is going to be cutting interest rates, investors have turned toward active management to help squeeze out as much income as possible through the benefits of ETFs,” he said.

🔍 Futures in ETFs Day 13: Managing Cash in Futures-Based ETFs – The Final Chapter 💡 As we conclude our series on futures in ETFs, it’s crucial to understand how ETFs manage cash and cash equivalents to support margin requirements. Efficient cash management is key to maintaining futures exposure while ensuring liquidity to meet margin calls. Here's how it works: • Cash Reserves: Futures-based ETFs hold a portion of their portfolios in cash or cash equivalents like short-term Treasuries to meet margin calls and provide liquidity. This ensures that the fund can handle fluctuations without selling off assets at inopportune times. • Collateral: The cash and cash equivalents act as collateral for the futures contracts, allowing ETFs to maintain exposure efficiently while minimizing credit risk. Proper collateral management helps ensure smooth fund operations, even during volatile markets. • Liquidity Needs: Maintaining liquid assets allows ETFs to roll contracts efficiently and manage potential redemptions, ensuring the ETF can meet both margin obligations and investor expectations. If you have any specific topics you'd like to see explored next on ETF Trading or ETF Capital Markets, feel free to suggest them! I’d love to shed some light on the areas of ETF investing that interest you! #ETF #Futures #CapitalMarkets #ETFCapitalMarketsAdvisorsLLC #Investing #PortfolioManagement #CashManagement #RiskManagement

📊 Q2 Fund Flows Update 📊 Fixed Income funds led the pack with $68.4B in inflows, Equity funds attracted $14B, and Money Markets saw $26.2B in outflows—reversing Q1's $18.1B inflows and possibly signaling investor anticipation of Fed rate cuts later this year. 🔍 Explore the trends shaping Q2's Fund Flows: 👉 Growing advisor interest in Active ETFs 👉 ETFs outperforming the S&P 500 👉 Top equity styles seeing top inflows All in our latest Fund Flows Report + Deck ➡️ https://lnkd.in/e_zQzFex 

The ADV of an ETF is often a misleading indication of liquidity. What matters much more are the liquidity of the underlying securities. A throwback blog that we recently resent to subscribers. Check it out! https://lnkd.in/eTfqjYRt

A provider of options, equities, ETFs, and futures analytics has launched the IvyDB Signed Volume intraday dataset, available in five-minute and 30-minute intervals. It offers insights on retail trading, 0DTE options, and more, while improving accuracy and data update speed. The dataset covers over 4,000 stocks since 2016. #Options, #Equities, #ETFs, #Futures, #Investors, #OptionMetrics, #Forex, #Trading

To understand why ETFs are structurally efficient trading vehicles and how to properly assess their ability to absorb large trades, it’s important to examine two topics: the root cause of price impact and ETFs’ creation and redemption mechanism.