ETFs, born from 1987 market crash, are so far making 2020 less awful

Financial markets have been terrifying over the past few weeks. But the losses and volatility seen recently don’t come close to Black Monday — October 19, 1987 — when the Dow Jones Industrial Average plunged 22.6% in one day.

As a reminder, ETFs allow investors to express a view on something: large-cap stocks will go up in price, say, or securities from a particular country might not be a good buy right after a populist wins a primary. But unlike mutual fund managers, who buy stocks or bonds or options or other assets, ETFs track — but don’t necessarily trade — those securities.

To be sure, through the most recent turmoil there have been some well-publicized dislocations of pricing in ETFs. As MarketWatch reported Tuesday, a large corporate bond ETF closed one recent trading day a bit lower than the value of the securities that underpin the fund. Barron’s has also written recently about such disconnects in other bond funds.

“ “This problem isn’t emanating out of ETFs. This is a run on the bank amid a collapse in confidence.” ”

مصر أحدث الأخبار, مصر عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

U.S. stocks climb 5% the day after biggest loss since 1987Stocks push higher Tuesday, the day after their worst plunge in more than three decades, as more government aid appears on the way.
مصدر: latimes - 🏆 11. / 82 اقرأ أكثر »

Stocks claw back ground a day after worst drop since 1987NEW YORK (AP) — Stocks are opening broadly higher on Wall Street Tuesday, a day after plunging to their worst loss in more than three decades. The Dow industrials added 150 points, or 0.7%, a day... Wondering how liberals are going to spin this, come election time, into it being Trump's fault... Until trump open his mouth.... Three decades is 1990. Go back further. That's how far Republican leadership has knocked us back.
مصدر: AP - 🏆 728. / 51 اقرأ أكثر »

5 things to know before the stock market opens TuesdayU.S. stock futures, in a volatile session, point to a bounce after Wall Street's worst day since the 1987 'Black Monday' market crash. This is good stuff Where's Larry 'Airtight' Kudlow these days?
مصدر: CNBC - 🏆 12. / 72 اقرأ أكثر »