You are viewing the chat in desktop mode. Click here to switch to mobile view.
X
ETF.com Live Chat!
powered byJotCast
Prev Page View Full Chat
Dave Nadig
mandatory buyers.
this is, incidently, also how we got negative interest rates on german bonds.
So you end up with more buyers for long paper, even though it pays worse than short paper.
3:05
That creates a kind of "forced buying" which drives down yields.  But short paper - particularly under a year - is often skipped over in those mandates.
The other explanation is that many firms (like insurance companies or some endowment funds or pensions) have mandates to own certain kinds of things -- like treasuries of a certain duration.
3:04
Why does it happen? Two theories.  One is that investors think that the future is awful, which is why you read all the headlines about an inverted curve predicting recessions.
3:03
Hi Spike, so, briefly, it's when the 10 year yield is lower than, say, the 2 year yield.  Or when the 20 is lower than the 10.
Spike
3:03
What is an "inverted yield curve" and what's its significance?
Dave Nadig
3:03
Some themes are just so narrow, the definitions have to be pretty broad to get an invest-able portfolio.
Some of these more thematic areas can get you some pretty surprising exposures.  You really do need to look under the hood.
3:02
But it is also, for reasons that baffle me, prominent in cleantech ETF PZD
I love Autodesk, I think its a great company, they make software like Autocad, and it features heavily in logical places like the 3D printing ETFs.
I think the MOST interesting one, which I frankly still don't quite get, is Autodesk.
3:01
That tends to happen with the non-pure-play versions like ishares IVE/IVW, but it can catch stocks like AT&T or Wells in the crosshairs.
The Dividend example is a good one, but I also always find it somewhat hillarious when you end up with Growth/Value funds owning the same thing.
3:00
Hi Todd, welcome back.
Todd Rosenbluth - CFRA Research
3:00
Hi Dave. ETFs often hold stocks investors would not expect. For example, despite sharp dividend cut  GE is owned by SDOG, DHS, DIV. https://www.etf.com/stock/GE Any other favorite examples?
Dave Nadig
And with that, let's get rolling!
At the end of this, we'll post a transcript at this same URL, in case you missed anything.
As always, you can enter your questions in the box below, and I'll get to as many as I can before my fingers cramp up (about half an hour).
2:59
Good afternoon!  Welcome to ETf.com Live!
Connecting…