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Dave Nadig
1:23
Well, look, nobody has "proven" anything because we don't have live product, with live holdings and live traders.
1:24
I see all the non transparent active things as a tradeoff between "how easy is it to arb" vs. "how much does the PM really need secrecy."
But ultimately, thats for the PM to decide.  If they think the Precidian structure is "too transparent" then nobody's forcing them to use it.  They can keep running mutual funds.
1:25
The "reverse engineering" here is simply: I give you a state (a static portfolio), weeks old.  SO I tell you I held all this stuff in, say, February.,
I now tell you second by second how that portfolio -- and every single trade I make for 90 days you dont see -- results in fair value.
You build an algo to try and "guess" what trades I have made from that steady state to generate this new pattern.
1:26
Your never going to get it perfectly, but sure, you might be able to suss out "hey they went from 10% tech to 80% tech"
I don't believe this will matter.  To anyone.
but thats just me, and like i said, let the market decide!
Priya
1:26
Hi Dave, Best ETFs to use to play oil’s rally?
Dave Nadig
1:27
Sumit Roy wrote a solid piece on this just recently here:
So two answers really.  If you think Oil -- the actual crude -- is going to continue rising like this, than short-term oil futures is the cleanest way to express that: something like USO.
1:28
But, if what you think is "now we have higher priced oil, and this is the new normal, who benefits" then you'd look at the equities
so XLE/XOP are the two big ETFs there.
the premise is "they'll do well with high prices"
1:29
I think thats a LITTLE simplistic, since many of the holdings are hugely vertically integrated -- yes they profit from selling higher priced oil, but they also PAY more for inputs into refineries, and so on.
onlavu
1:29
hi, in Europe, we cannot buy US ETFs due to EU legislation which came into affect quite recently. Is this going to change? Are there any initiatives to make it any better? thanks
Dave Nadig
1:30
So, I don't see anything that will make cross-border trading magically easier for EU citizens I'm afraid/.
Hence I know many (very rich) folks have accounts in multiple domiciles, to avoid this.
but if you're just a normal person, living in, say, France, well, you're going to have to live in that regime.  If it makes you feel any better I don't think I can buy UCITS funds in my Schwab account either.
1:31
OK, sorry to cut short here at half an hour.  Appreciate the great questions and appolgize for the ones I didn't get to.
We're shooting for Wednesday afternoon next week, so join us again then!
THanks everyone, we'll see you next time.
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