EFT Go Boom

The Opportunistic Trader ETF (WZRD) is down 97% year to date at Friday's close.

This is not a fund we've ever looked at here but Gemini thinks that the fund got hurt buying ODTE options and that those trades went wrong. ODTE stands for zero days to expiration. Assuming it's as simple as Gemini reported, going long volatility in that manner is a tough way to make a living.

VistaShares closed the Bitbonds 5 Year Enhanced Weekly Distribution ETF (BTYB). The fund allocated 80% to five year treasury notes and 20% to selling Bitcoin calls in an attempt to double the yield of the five year. When I looked, it seemed like it was doing what it was supposed to. The concept seemed solid to me as a sort of barbelling to magnify the yield. It did not trade like a hot potato so I am surprised it closed so quickly.

Something that I am getting a kick out of, there's finally going to be an ETF comprised of publicly traded exchanges, the Van Eck Global Exchanges ETF (TIKR). I first brought this up many years ago on the first iteration of the blog. The following is a list of the probable constituents. 

I've owned a publicly traded exchange for clients almost since they first started to go public quite a few years ago. From the bottom up, I believe they are cash flow machines and from the top down, it's an easy way to add non-bank financial exposure. 

The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.