ETF Market Trends - Leveraged and inverse ETFs, while small relative to the overall ETF market, exhibit significant trading activity, raising questions about their potential impact on the options markets [2] - Retail investors and ETF issuers are increasingly engaging with risky leveraged and options-based ETFs, viewing them as "lottery tickets" with potential for high returns [7][8] - The industry anticipates a lifecycle for retail investors in these products, with initial enthusiasm potentially leading to negative experiences and a subsequent shift towards more traditional index funds [9][10] - Issuers will continue to launch these products, but some will thrive while others will fail, presenting closure risk [10][11] Correlation and Volatility - There's a notable increase in volatility within the risk-on/risk-off space, impacting crypto and other high-beta stocks, leading to conditional correlation where seemingly unrelated stocks trade in line during market weakness [3][4][5] - Correlation convergence is observed during periods of volatility, impacting the prices of options on sector-based ETFs [5][6] Crypto ETFs - Despite recent downside volatility, Bitcoin ETFs have experienced substantial growth, with Bitcoin up over 80% since the launch of spot Bitcoin ETFs in January 2024 [12][17] - Spot Bitcoin ETFs have seen outflows of approximately $45 billion over the past month, but year-to-date inflows remain significant at around $22 billion [18] - Spot Ether ETFs are down 40% since early October, but year-to-date inflows are about $10 billion [19] - Deleveraging in the crypto space is identified as a primary driver of recent weakness, exacerbated by broader equity market weakness and increased correlation among higher beta names [19][20] - Bitcoin price could test the $70,000 level, which represents the breakout point and the cost basis of strategies Bitcoin holdings, potentially finding support near the cash cost of mining [16]

Volatility is the entry fee to the stock market’s long-term gains. Pay it gladly — or stay outside the gates forever. ...

Core Viewpoint - Investors should be prepared to handle market volatility as a part of their investment strategy [1] Group 1 - John Buckingham emphasizes the importance of being willing to accept fluctuations in the market [1]

Joining us this morning to talk more about Bitcoin's volatility is bullish CEO and former NYC President Tom Farley, who unfortunately not on set, but it's great to see you, Tom. Thanks for the help. >> Hey, Carl.Next time I'll be on set, I'm actually headed down to DC to lob lobby the market structure bill make it in. >> Well, you were here a couple weeks ago and we talked about uh some of the volatility that we saw in November. Are you heartened by this return to 90K at least.Uh yeah, I although I'm not su ...

You're the head of Alultim Alimter Capital. You're a big tech investment firm. You've got top holdings that include Nvidia, Amazon, Alphabet, OpenAI, Microsoft, lots of others.So, let's talk a little bit about what you're seeing in the tech economy, in the broader economy, and where things are headed because there's been a lot more volatility lately. >> Yeah, I I happen to think that volatility is good, and let me tell you why. >> We're coming up on the third anniversary of Chat GPT.We've come a long way fa ...

🇺🇸 The Federal Reserve officially ends Quantitative Tightening (QT) .This means the Fed stops draining liquidity from the market — a historically bullish signal for risk assets like crypto. 📈🟢More liquidity → more volatility ahead. ✨Watcher.Guru (@WatcherGuru):JUST IN: 🇺🇸 Federal Reserve officially ends quantitative tightening. https://t.co/tknVKlbKIF ...

Bitcoin's retracement after stabilizing late last week has reintroduced fragility and volatility, said trading firm Zerocap. ...

💡 Opportunity lives in volatility.Diversify beyond crypto and time your entries.#Bybit #CryptoArk ...

Markets kicking off December with losses though, even after last week's big rebound. Historically, December has been a seasonally strong month without much volatility. Will this December prove to be the same.Well, joining us now is Max Kentner. He is chief multi-asset strategist at HSBC. Max, it's great to have you back on the show.And let's start right there because historically December tends to be one to remember for all the right reasons. How do you see this market shaping up right now into year end. >> ...

Core Insights - The Vanguard Growth ETF (VUG) focuses on tech-heavy growth stocks with higher recent returns, while the Vanguard S&P 500 ETF (VOO) offers broader diversification, lower risk, and a larger dividend payout [1][7]. Cost and Size Comparison - VUG has an expense ratio of 0.04% and assets under management (AUM) of $204.7 billion, while VOO has a lower expense ratio of 0.03% and AUM of $800.2 billion [3]. - VUG's one-year return is 20.0%, compared to VOO's 13.5%, and VOO provides a higher dividend yield of 1.15% versus VUG's 0.43% [3]. Performance and Risk Analysis - Over five years, VUG has a maximum drawdown of -35.61%, while VOO's is -24.53% [4]. - A $1,000 investment in VUG would grow to $2,008 over five years, compared to $1,880 for VOO [4]. Portfolio Composition - VOO holds 504 stocks, with 36% in technology, 13% in financial services, and 11% in consumer cyclicals, providing a diversified risk profile [5]. - VUG allocates 52% to technology, with significant portions in communication services and consumer cyclicals, leading to higher potential volatility [6]. Investment Strategy - VOO is a broad-market fund tracking the S&P 500, suitable for investors seeking stability and average returns [8][10]. - VUG targets above-average growth stocks, historically achieving higher returns but with increased volatility and risk [9][10].