Elevator Down, Stairs Up

Source: WSJ

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  1. rd commented on Aug 27

    “The fact that equity ETFs traded below their net asset values due to trade halts in individual stocks is not a defect of ETFs, it’s an advantage that increases total liquidity.”

    I assume that this is thoroughly explained to investors using ETF portfolios in the many robo-advisor and human advisor platforms and they understand and accept the trading risks.


  2. constantnormal commented on Aug 27

    I wonder about the potential for HFT shops to “game” ETFs, by inducing a trading halt in tickers known to represent a significant portion of some ETFs, and either buying/selling the ETFs during the trading halt, effectively arbitraging the trading halt that they spawned. Or perhaps I misunderstood …

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