The Federal Reserve Bank of New York is investigating if the price of exchange traded funds (ETFs) is significantly differentiating from the underlying holdings in those funds. The investigation comes as prices between the underlying assets and the ETFs they purport to represent swing widely. The iShares iBoxx high-yield bond ETF recently traded at a discount of almost 1 percent to net asset value held in the ETF, and then climbed to a premium of 1.3 percent last week, according to a report in the Financial Times by Tracy Alloway. Russian ETFs trading at a discount The report observed earlier…
New York Fed Investigating ETFs [Report]
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.