A historic surge of cash has swept into exchange-traded funds, spurring asset managers to launch new trading strategies that could be undone by a market downturn.
This year's inflows into ETFs world-wide crossed the $1 trillion mark for the first time at the end of November, surpassing last year's total of $735.7 billion, according to Morningstar Inc. data. That wave of money, along with rising markets, pushing global ETF assets to nearly $9.5 trillion, more than double where the industry stood at the end of 2018.
Most of that money has gone into low-cost U.S. funds that track indexes run by Vanguard Group, $Blackrock (BLK.US)$ and $State Street (STT.US)$, which together control more than three-quarters of all U.S. ETF assets. Analysts said rising stock markets, including a 25% lift for the S&P 500 this year, and a lack of high-yielding alternatives have boosted interest in such funds. $Fidelity Blue Chip Growth Etf (FBCG.US)$ $SPDR S&P 500 ETF (SPY.US)$
You have this historical precedent where you have tumultuous equity markets, and more and more investors have made their way to index products.”
--- said Rich Powers, head of ETF and index product management at Vanguard.
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Asset managers long known for running mutual funds are rushing to take advantage of investors' interest in active ETFs. More than half of the record 380 ETFs launched in the U.S. this year are actively managed.
--- according to FactSet.
Fidelity, Putnam and $T. Rowe Price (TROW.US)$ are among the firms that have rolled out actively managed ETFs in 2021. Firms new to ETFs have also entered the fray. The top 20 fastest-growing ETFs, largely run by Vanguard and $Blackrock (BLK.US)$, this year pulled in nearly 40% of all flows, charged an average fee of less than 0.10 percentage point and tracked benchmarks of some sort.
Many active ETFs remain comparatively small and charge fees higher than passive funds, putting a swath of new products at risk of closing over the next several years. ETFs usually need between $50 million and $100 million in assets within five years of launching to become profitable, analysts and executives say; funds below those levels have tended to close.
Of the nearly 600 active ETFs in the U.S., three-fifths have less than $100 million in assets; more than half are below $50 million.
--- according to FactSet data.
You' re going to see a lot of those firms take a hard look at their future.”
--- said Elisabeth Kashner, FactSet’s director of ETF research.
Analysts also said the success of ARK Investment Management Chief Executive Cathie Wood in 2020 showed how active ETFs can score big returns and pull in substantial sums of money. Several of ARK's funds doubled last year, and its assets approached $60 billion earlier this year, though many of its bets have slumped in 2021. $ARK Innovation ETF (ARKK.US)$ $ARK Genomic Revolution ETF (ARKG.US)$
Most other active managers aren't doing much better. Two-thirds of large-cap managers of mutual funds have fallen short of benchmarks this year, while roughly 10% of the 371 U.S. active ETFs with full-year performance data are beating the S&P 500. More than a third are flat or negative for 2021.
Did you invest in ETFs this year? How was your return？
Source: Wall Street Journal

$XIAOMI-W (01810.HK)$ Today Xiaomi is leading the entire technology sector! Although the performance is not great.

My youtube channel:
https://www.youtube.com/channel/UCAPWOEQKCpCWmzKkdo7v-iw
Xiaomi is showing resilience today finally after breaking 20 then 19 then 18 HKD before making a small gain today from 18.12 to 18.22 HKD. This is considered a blessing since Hang Seng Tech tanked close to 2.5%. Companies like Kuaishou Tech, Alibaba, Bilibili, Netease, Meituan, etc all came down by close to 3%... Well is it that Xiaomi has already fallen to the value territory and the point that it doesnt make sense for it to go further?
I cant say that for sure but the chip shortage, poor IR handling skills, handset competition in China and other markets plus the capital worries for the EV unit may weigh on Xiaomi... But so what? There was even the concern that Lei Jun had to step down from key business units may signal some problems.
Then again when Lei Jun emerged as the controlling individual of the Venture Cap or rather PE arm of Xiaomi, such panic over Lei Jun abated which may explain for today's resilience. Of course another part could be Xiaomi own share buyback. Even with the share buyback all the way from 27 HKD down to 18 HKD, such share buyback pales and cant work when the narrative and downside pressure over whatever can be said weigh on Xiaomi..
But VALUE WILL EVENTUALLY EMERGE.. will the IPO Price of 17 HKD provide a strong support? Only time will tell but I am a truly long-term investor of Xiaomi...
See this youtube video by me on Xiaomi if you want to know why I believe in Xiaomi:
https://www.youtube.com/watch?v=glRHKF1fQkU
As always, this should not be construed as any investment or trading advice.
$XIAOMI-W (01810.HK)$ $Xiaomi Corp. Unsponsored ADR Class B (XIACY.US)$ $Lenovo (05562.HK)$ $Haier Smart Home (600690.SH)$ $HAIER SMARTHOME (06690.HK)$

$Adamis Pharmaceuticals (ADMP.US)$ ADMP should inject something from its stockpile into its stock so it can go up. right now it’s worse than an erectile dysfunction

$MARA Holdings (MARA.US)$ $Riot Platforms (RIOT.US)$ $Bitfarms (BITF.US)$ Short term short baised. I believe there will be a dump in the up coming weeks. Before the dump, try to stay out of it and wait.

$Autodesk (ADSK.US)$ One ofmy favorite buys