TRP CEFs Not quite every ETF operates under the same rules. As the PR notes, "Rule 6c-
11 will be available to ETFs organized as open-end funds, the structure for the vast majority of ETFs today".
A couple of not so obscure ETFs with a different structure are SPY and DIA. Since the creation of new UITs is unlikely and the SEC would have struggled to fit them into Rule 6c-
11, UITs were excluded from the Rule.
More generally, "While the Rule covers most ETFs, the Rule excludes unit investment trust (UIT) ETFs, Leveraged/Inverse ETFs, Share Class ETFs [notably Vanguard ETFs], and Non-Transparent ETFs."
Exchange-Traded Funds Alert, October 2019; A Closer Look at the New ETF Rule, Stradley Ronon
It draws a distinction not so much between passive and active as between transparent and non-transparent. I suppose in theory an index fund could be non-transparent. I'd ask why bother, except Vanguard seemed to think there was a reason not to disclose its index ETF holdings.
I recall that Vanguard characterized its Tax-Managed International Fund&sup
1; (VTMGX) as actively managed while calling the ETF share class of the fund, VEA, passively managed. I asked Vanguard about this, and the response was that tax management made the fund actively managed, but the ETF (same fund) was passively managed! Yes, Vanguard got away with murder.
&sup
1; On "April 4, 20
14, Vanguard Developed Markets Index Fund merged into Vanguard Tax-Managed International Fund, and the combined fund was renamed Vanguard Developed Markets Index Fund."
https://institutional.vanguard.com/investments/product-details/fund/0127
Tough Day in Bond Land Does anyone here buy individual corporate bonds or TBills?
I know you can do latter through TreasuryDirect, as well as broker.
Examples:
Dish, B- (hmmm), 1 year, 5%
Ford, BB+, 1 year, callable (lol), 3.7%
Alibaba, A+, 1 year, 3%
US TBill, 1 year, 1.5%
OIL What US listed publicly traded vehicle most closely correlates to WTI oil price? Cannot be a K-1 or ETN.
TRP CEFs For decades, the ETFs operated under the so-called "exemptive-orders" (from rules that were really designed for mutual funds). Early ETFs got generous exemptions, but the later ones had more restrictive exemptions. Vanguard got away with murder with its very early exemptive-orders. The SEC announced reforms to this old, contorted mechanism and guess who was among those opposing the reforms - Vanguard. Anyway, the reforms happened in 20
19 and now every ETF has to follow the same rules. But rules are still different for passive ETFs, active ETFs, leveraged ETFs (another fiasco where the SEC left out ETNs from those).
https://www.sec.gov/news/press-release/2019-190
TRP CEFs Traditionally, indexed ETFs were not required to disclose holdings on a daily basis. The rules were changed in the past few years; in 20
15 the WSJ wrote:
here’s what many ETF investors probably don’t know: Passively managed ETFs—those that seek to track an index—actually aren't required to disclose all of their portfolio holdings daily.
Many fund sponsors voluntarily provide that information. But at least one major ETF sponsor, Vanguard Group, doesn’t.
Index funds do have to make available to so-called "authorized participants"—typically large institutional organizations, such as large securities firms—what's known as a "creation basket" daily. That list of securities typically [but not always] mirrors an ETF’s holdings or is a representative sample. Authorized participants who assemble and deliver that specified basket of securities receive ETF shares in its place.
https://www.wsj.com/articles/BL-TOTALB-2415My point here is just that IMHO transparency is overrated. Vanguard ETFs worked well for many years without it. So long as the arbitrage mechanism with authorized participants and portfolio composition files (creation basket/redemption basket) works well to keep market price close to NAV, daily transparency isn't essential.
As Sven noted, mutual funds generally take their full 30 days plus to disclose portfolios and investors are okay with that.
Surely no list of offbeat active ETFs that voluntarily release holdings on a daily basis would be complete without mentioning ARKK's d
aily disclosure.
Tough Day in Bond Land Overnight the
10 year touched 2.
14% . Stunned me a bit seeing it on the
Bloomberg screen.
High by recent standards.
+
1 @Charles Thanks for reposting that photo. The 3 riders:
“Stocks”, “Bonds” and “Commodities”.
gross bill
Tough Day in Bond Land For retirees who depend on bond yield, this is not a friendly environment.
Today the yield on 2 and 10 year treasuries went down a bit today after the 10 Y went over 2.0% on Monday.
Fed meets on Wednesday, March 16th and will decide to hike the rate 0.25% or 0.50%.
Plummeting commodity prices and inflation? @Junkster said,
“don’t want my bearish bias to influence me …”I resemble that remark. :)
I don’t think I can time the markets. (Perhaps others can.) I almost always regret it. Raising my “alternative” sleeve from 30% to 40% is probably the best move I’ve made recently. it’s a moderate but diversified mix of various strategies and includes one equity. Some came out of growth and some out of income. Reduces neck discomfort from all the whip-saw action.
Still holding another 9-
10% in hedges against equity downdrafts. About half of that in TAIL - which reduces the discomfort evident in that classic “Observer” thrill-ride photo that’s already been reposted.
Gold’s down over $45 today to just above $
1900. May seem like a lot - but need to remember it got down to $
1700 on 2 or more occasions in 202
1. So still well above that.
EDIT: While gold is down, the p/m miners are having a decent day up nearly
1%. Looks like the industrial metals have trimmed their morning losses as well.
You can believe in inflation without giving it a name or degree: ie “transient”, “rampant”, “slight” or “just about right”. I can’t think of any other reason for those of us with gray hair (or none at all) to put a single dime at risk unless we think paper currencies will buy less in coming years than they do today.