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Derivatives-Based ETFs Are Booming in Popularity The US-listed ETFs have seen their assets grow sixfold in the past five years https://t.co/V9kA5pcAwt
‘100%’ Yields Fuel a Retail Boom in ETFs - Bloomberg https://t.co/9ZvgLy7bTA https://t.co/yvM5ep5zWN
Another reason why vol is so low. BB article on retail derivative ETFs. "‘100%’ Yields Are Fueling a Retail Boom in New Quick-Buck ETFs" "Fueling the craze are funds that sell options to generate cash, which is then sent back to shareholders as dividends." https://t.co/4j5VzE5Txm
The market for US-listed derivatives-based ETFs is experiencing significant growth, with 164 new launches this year alone. Assets in these ETFs have increased sixfold over the past five years, reaching $300 billion. The rapid growth is being driven by '100%' yields, which are attracting retail investors. These funds often sell options to generate cash, which is then distributed to shareholders as dividends. The boom in these quick-buck ETFs is contributing to lower market volatility.
