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Not yet, institutional investors aren’t buying after hours. This is speculators trying to get in ahead of the institutional buyers.
by bradleyjg 2y ago
Not yet, institutional investors aren’t buying after hours. This is speculators trying to get in ahead of the institutional buyers.
- golergka 2y agoTechnically speaking, what you're saying is not a counter argument, because the causal relationship between the two still holds. They shares are spiking because EFT will buy them. Because other players on the market anticipate it.
- baby 2y agoYou'd think they might have already bought in anticipation to avoid exactly this. Or OTC
- 0cf8612b2e1e 2y agoWouldn’t a hedge like that be in violation of the ETF? You claim you are going to purchase a weighted distribution of 500 companies, but you actually own 515, just in case?
- bradleyjg 2y agoDepends on the exact language in the prospectus.
- bradleyjg 2y agoMaybe some atm options on the four or five most likely candidates.
- Ekaros 2y agoOfc they are doing this. Institutional buyers are not one mind. The managed funds which rules allow these trades are likely buying early. That is what they paid to do. The Index funds are "stupid" or mechanical. They rebalance on as their rules indicate, but they are cheap. I am not even sure is it illegal to front run your own fund with other fund... Buy before rebalancing and then sell it to indexed fund at market price...