http://www.etftrends.com/2008/12/why-etfs-play-a-role-in-market-volatility.html Keeping a grip on exchange traded funds (ETFs) Mon, 15 Mar 2010 19:39:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.etftrends.com/2008/12/why-etfs-play-a-role-in-market-volatility.html/comment-page-1#comment-2736 Michael Neidich Wed, 17 Dec 2008 17:40:56 +0000 http://www.etftrends.com/?p=6811#comment-2736 The question is not whether they contribute to volatility or big moves, but when the funds and ETF's settle up their account. If they did it throughout the day, redemptions or sales would have little effect. If they all settle up at the end of the day, it's definitely a cause of end of day moves. I have heard on CNBC's Mad Money that hedge funds and other managers wait to unload until it is advantageous to them. I see little point in buying or selling large quantities at one time if you move the market. Buying during the trading sessions makes more sense to me. Am I looking at this wrong? The question is not whether they contribute to volatility or big moves, but when the funds and ETF’s settle up their account. If they did it throughout the day, redemptions or sales would have little effect. If they all settle up at the end of the day, it’s definitely a cause of end of day moves. I have heard on CNBC’s Mad Money that hedge funds and other managers wait to unload until it is advantageous to them. I see little point in buying or selling large quantities at one time if you move the market. Buying during the trading sessions makes more sense to me. Am I looking at this wrong?

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