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When ARKK blows up it will precipitate a change in how some ETFs operate. ARKK is basically Archegos-lite (with retail investors bag-holding, not investment ban
by hogFeast 5y ago
When ARKK blows up it will precipitate a change in how some ETFs operate. ARKK is basically Archegos-lite (with retail investors bag-holding, not investment banks), they have invested heavily in a few stocks, have cornered the price, and when the fire alarm goes off they are the fat guy that gets jammed in the fire door. The fundamental principle of an ETF is liquidity, ARKK has wilfully debauched the concept for their own gain.
You are seeing this with a few other ETFs, particularly INRG...amazingly given that they blew up in 2008 for the same reason, but a lot of these are attempting to manage the concentration risk (INRG recently rebalanced). ARKK is just pure greed: marketing fiction, aggressively corner the market, fuck the customers, fuck the consequences.