Loading ...“On a more serious note, when they came out with the instant approval of the ETF’s at about the turn of the new century I asked myself …..WHY?
Why would they make it so easy for investors to buy a whole basket of stocks with one simple click when if you wanted to buy each individual stock it would require many transactions/trades to accomplish the same thing? This sounds like it’s too good to be true…. and the owners and backers (banks and brokerages) of the ETF’s would be giving away fortunes by creating these ETF’s. Something smells fishy! I learned that all ETF’s are DERIVATIVES, and derivatives are an uncontrolled and unregulated market that is being allowed to use the world’s stock exchanges to market their wares. I also checked a couple of the original charters, and the language they used made me even more suspicious. In no case did it say they bought or sold the underlying stocks or commodities their ETF represented. All it said was that they TRACKED the value of those stocks or commodities and reported their value at the close of each trading day.
Okay, are these banks and brokerages all stupid or is there something else going on?? I wonder what they are doing with all that investor money? They have no obligation to buy the shares or commodities they track…right? Are they so stupid they just sit on all that investor money for the small management fee they charge??? or is that money being used to control the markets?
Suppose all that ETF investor money is being pooled into a huge slush fund, or a few huge slush funds, that is being used wherever it is needed to control the markets???
Why, when about 20 years ago there were only a handful of ETF’s, are there now more than 9000 of them and why does Blackrock own more than half of them???
How did it develop that Blackrock, StateStreet, and Vanguard now make more that 80% of all US (and world?) market trades?
I keep coming up with more and more questions but always the same answers. Nothing is happening by accident!”