ETF Edge Newsletter

Your weekly update on top ETF trends

VIEW IN BROWSER | SUBSCRIBE WED, SEP 09, 2020 YOUR WEEKLY UPDATE ON TOP ETF TRENDS A NOTE FROM BOB S&P snubs Tesla: Did they make an error? A lot of unhappiness in the indexing/ETF community over the S&P's snub of Tesla. Most people think the S&P 500 consists of the 500 largest companies in the U.S., but the S&P committee just told the 11th largest company it couldn't join the club. It's a reminder the S&P 500 is not a rules-based index, inclusion is decided by a committee that may or may not consider size as a critical factor. Should the S&P go more toward a rules-based system, as the Russell 1000 is? Join us on ETF Edge  as we discuss indexing with Tom Lydon (ETF Trends), and Andrew McOrmand (WallachBeth) ETFEdge.cnb.com at 1:00 PM ET on Thursday.   New stock exchanges: do we need them? Three new stock exchanges launch this month, but the most interesting is Long-Term Stock Exchange, which launched Wednesday and is pledged to support companies who share a long-term interest in sustainability, inclusion and diversity, and treating employees fairly. CEO Eric Ries joins us to discuss the exploding interest in Environmental, Social and Governance (ESG) issues and why he believes the time is right to launch an exchange around the concept. Join Log-Term Stock Exchange CEO Eric Ries on ETF Edge!   More ETF News Does smart beta really outperform? Factor investing—by value, growth, volatility, quality, momentum, is all the rage. But one new study says it doesn't outperform. A paper from researchers at the University of Washington and the University of Hong Kong conclude that studies that show that smart beta strategies outperform when backtested don't actually outperform when they are put in the real world: the average return of smart beta indexes drops from 2.77% per year on paper before ETF listing to a loss of 0.44% per year after ETF listing, the authors conclude.   This ESG trend really has legs. Bank of America has announced additional steps to increase diversity among the asset managers on its investment platform.   First CLO ETF starts trading. Been waiting for this one ... Collateralized Loan Obligations (CLOs) package and sell leveraged loans into chunks of varying risk and return. The AAF First Priority CLO Bond ETF (AAA) began trading this week on the NYSE. Bob Pisani @BobPisani KEY STORIES  Stock market live Wednesday: Dow jumps more than 400, tech rebounds, Tesla gains 10% after worst day ever Stocks advanced on Wednesday as tech names led a rebound for the major averages. Stock market live updates: Tech rout pushes Nasdaq into correction, Dow drops 600, Tesla worst day ever This is CNBC's markets live blog that will be updated throughout the day.  ESG gets pushback at Barclays, but it's still a 'significant opportunity,' strategist says Environmental, Social and Governance assets still have room to grow despite questions from Barclays around their performance, S&P Dow Jones Indices' Mona Naqvi says.     IN CASE YOU MISSED IT ETF Spotlight: JNJ gets positive vaccine test results ETF Edge explains: tax risk of ETFs iShares transports ETF hovers near pre-pandemic levels after airlines announce waiving ticket change fees   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2020 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS