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
- Dallas Pension Showdown: Mayor Seeks to “Target Those Who Got Rich From System” | Financial Sense
- CNBC Shills Attempt to Derail the Farage Train, But Fail Miserably | ZeroHedge
- France: Decomposing In Front Of Our Eyes | ZeroHedge
- Circadian Rhythms and the Microbiome | Financial Sense
- Bill Gross Reveals The "Global Establishment's Overall Plan" In Eight Simple Steps | ZeroHedge
- A Banana Republic In The Making - "The Glue Of Reason In India Is Flaking" | ZeroHedge
- Catalysts for Higher Global Bond Yields | Financial Sense
The most relevant financial news and articles from the Internets
- This futuristic lamp can do everything an Amazon Echo does (AMZN, GE) | Business Insider
- Florida woman charged with making death... | Business Insider
- Big Oil is all set to bounce back in 2017 | Business Insider
- Here's the problem with Trump's plan to sell health... | Business Insider
- Fitbit is buying Pebble — here's what that means... | Business Insider
- 21 signs it's time to quit your job | Business Insider
- Drew Brees Tops the Power 100 in 2012 | BusinessWeek