Volatility Wins Again
Always a risky bet but after the iPath S&P 500 VIX Short Term Futures (VXX) hits 52-week lows it due for a bounce. Such is the case this week after the VXX got down to $12.70 last Friday. Today the VXX is at $13.61 and fear enters back into the market.
Could all the ETFs trading on the market be part of the increased volatility? That's the question theStreet.com digs into today. Mastery recommends reading their findings.
NEW YORK (TheStreet) -- Since their creation in 1993, ETFs have opened up a new channel of arbitrage for market participants and now account for 25-35 percent of daily trading volume.
ETFs allow investors to track indices or baskets of assets, allowing for more diversification and access to illiquid assets. Engaging in arbitrage, investors can profit from price deviations between the ETF and the Net Asset Value (NAV) of its underlying assets. While giving investors a low-cost investment tool, researchers argue whether ETFs may have brought some adverse effects to the market from arbitrage (continue).
Best of the Blogs
Scanning and identifying the best blog entries every hour
- This Is Why The Euro Is Finished | ZeroHedge
- Happy Independence Day, Brought To You By The Chinese | ZeroHedge
- Deadlines, Deals, and Defaults | Financial Sense
- FDIC Sounds Alarm On Insolvent, "Zero Hedged" Oil & Gas Producers | ZeroHedge
- Saturday Cinema with Le Fly: The Crash (1932) | iBankCoin.com
- Greece’s Referendum | Financial Sense
- The Economist Calls Victory For "No" Camp: Sees 60% Voting "Oxi" | ZeroHedge
The most relevant financial news and articles from the Internets
- 9 photos show the chaos in Greece right now | Business Insider
- 25 Ways to Make LinkedIn Work for You | BusinessWeek
- I ditched Spotify to use Apple Music — and I don't miss it (AAPL) | Business Insider
- The Chinese government just took drastic steps to save the stock market (FXI, CNY) | Business Insider
- Heatwave grips Tour de France start city | Business Insider
- Palantir, the War on Terror's Secret Weapon | BusinessWeek
- 'No' seen prevailing in Greece referendum: exit polls... | Business Insider