See also

    Dukascopy. Interbank forex broker provides highest liquidity and marketplace for on-line forex trading.
Indices
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Commodites
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  • 83.08
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  • 1.17
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  • 730.5
  • 1782
  • 38.21
  • 109.16
  • 55.42
    Last update:
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Interactive historical charts Interactive historical charts since 1900

Czytaj Exchange-Traded Funds - Criticism







Type of Orders
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SEAQ, SETS, SEATS Plus or SEAQ International
Stocks
Categories of Stock
Types of Stock
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Funds
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Exchange - Traded Fund (ETF)
Exchange - Traded Fund (ETF) - Investment uses
Exchange - Traded Fund (ETF) - Types of ETFs
Exchange - Traded Fund (ETF) - Structure
Exchange - Traded Fund (ETF) - ETFs compared to mutual funds
Exchange - Traded Fund (ETF) - History
Exchange - Traded Fund (ETF) - Criticism
Bonds
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Depth of market (DOM)
Open Outcry Trading at CME
Full map of the CME trading floors
Commodity Trading Advisor (CTA)
General Structure of a Managed Account
General Structure of a Futures Fund
Commodity Pool Operator (CPO)
Hedge Funds - overwiew
Hedge Funds - REGULATORY REQUIREMENTS
FEDERAL SECURITIES LAWS: Exemption from Registering Hedge Fund Interests As Securities
FEDERAL SECURITIES LAWS: Exemption from Registration as an Investment Adviser
Exemptions from Registration as a Commodity Trading Advisor
About the Introducing Brokers
Introducing Brokers: Volume and Commissions
Introducing Brokers: Income
Associated Persons (APs): The Exam
CTA career: Discretionary Strategies
CTA career: Registration Requirements, Cost
CTA Registration and Audits: Being Audit Ready, General Information and Records
Proprietary Traders
"Local" Traders
Scalpers
Proprietary Traders
Rate of Return Calculations
Margin-to-Equity Ratio
Commission-to-Equity Ratio
Sharpe Ratio
Requirements for Floor Brokers
What is the NYSE?
What is the NYSE Arca?
How the NASDAQ Market Works?
How to Read a Stock Table
The major UK indices
Price Earnings ratio (P/E)
Top Down and Bottom Up Strategy
Value v growth strategy
Large v small cap strategy
Understanding Warrants
Managed Futures: Pitfalls in Performance Evaluation
Secrets of Successful Trading in Commodities and Financial Futures
The Genesis of Over The Counter Interest Rate Derivatives
Dow Theory Introduction
Types of Equity Derivative
Naked short selling
Municipal bond
Credit derivative
Money market
Money fund
Treasury Securities (notes. bills, bonds etc.)
Federal funds
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Certificate of deposit
Eurodollar deposits
London Interbank Offered Rate (LIBOR)
Euro Interbank Offered Rate (EURIBOR)
Prime rate
Exchange-traded notes (ETNs)
ETNs - Structure
ETNs - Advantages
ETNs - Disadvantages
ETNs - Prospect and Conclusion
Day Trading
Day Trading - Characteristics
Day Trading - History
Day Trading - Techniques
Day Trading - Cost
Day Trading - Regulations and Restrictions
Scalping
Scalping - Market manipulation
Scalping - Factors affecting scalping
Efficient-market hypothesis




Criticism

John C. Bogle, founder of The Vanguard Group, a leading issuer of index funds (and, since Bogle's retirement, of ETFs), has argued that ETFs represent short-term speculation, that their trading expenses decrease returns to investors, and that most ETFs provide insufficient diversification. He concedes that a broadly diversified ETF that is held over time can be a good investment. ETFs are dependent on the efficacy of the arbitrage mechanism in order for their share price to track net asset value. While the average deviation between the daily closing price and the daily NAV of ETFs that track domestic indexes is generally less than 2%, the deviations may be more significant for ETFs that track certain foreign indexes.[4] The Wall Street Journal reported in November 2008, during a period of market turbulence, that some lightly traded ETFs not infrequently had deviations of 5% or more, exceeding 10% in a handful of cases, although even for these niche ETFs, the average deviation was only a little more than 1%. The trades with the greatest deviations tended to be made immediately after the market opened.

ETFs offer little or no advantage over index funds for tax-deferred, long-term, retirement investors, because such investors typically conduct little if any trading and tax issues are of little concern for them.

In a survey of investment professionals, the most frequently-cited disadvantage of ETFs was the unknown, untested indexes used by many ETFs, followed by the overwhelming number of choices.

Some critics claim that ETFs can be, and have been, used to manipulate market prices, including having been used for short selling that has been asserted by some observers (including Jim Cramer of theStreet.com) to have contributed to the market collapse of 2008.



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