ETF Zoo

Why Rebalancing Killed the ARK Star

In this episode of the ETF Zoo, Dave Nadig, President & Director of Research at ETF.com, talks with Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence and Todd Sohn, Senior ETF & Technical Strategist, Strategas Securities. The crew talks current ETF flows, including blockbuster flows into the Roundhill Memory ETF (DRAM) [https://www.etf.com/DRAM], offers their perspectives on ARK Invest and Cathie Wood’s active management style, movement in Treasury yields, and more.  You can also find the video version of this conversation on our site [https://www.etf.com/sections/podcasts/etf-zoo-why-rebalancing-killed-ark-star] as well as over on YouTube [https://youtu.be/EUIDiD8xCPM]. As always, the episode opens with a discussion about the ongoing, staggering pace of recent ETF flows. Setting aside a brief period of restraint in March, equity inflows have consistently hit over $5 billion to $7 billion per day. The Zoo crew this week noted that the massive influx is being heavily driven by legacy asset managers and mutual funds slowly converting their business models into ETFs. Interestingly, despite major drawdowns, total cumulative flows into Bitcoin ETFs remain incredibly sticky at around $57 to $58 billion, showcasing strong long-term holder conviction. Beneath the broader market surface, capital is overwhelmingly being vacuumed into technology and artificial intelligence still. The crew highlighted the continued flows into the Roundhill Memory ETF (DRAM) [https://www.etf.com/DRAM], which shattered non-crypto records by reaching $10 billion in assets in just over six weeks. This specific interest underscores an investor appetite for thematic pick and shovel plays, with a specific focus on capacity-constrained memory and hardware infrastructure necessary to power generative AI. While safer alternatives like Vanguard’s new target bond maturity ETFs are quietly growing in the background, high-beta tech innovation remains the dominant market force. A significant portion of the conversation focused on a recent critique of Cathie Wood and ARK Invest. Balchunas offered a nuanced defense, arguing that while Wood boasts an exceptional eye for early-stage disruption (e.g., Nvidia, Tesla, Bitcoin), her performance suffers due to its rebalancing strategy. By consistently trimming her skyrocketing winners to fund underperforming laggards, she severely capped her long-term returns.Roy countered by emphasizing the fund's massive drawdowns and overall underperformance relative to the S&P 500. However, the group agreed that ARK's assets remain remarkably sticky because traders utilize her high-beta funds as a tactical vehicle to express extreme growth sentiment. The episode concluded with a look at eccentric market updates and product filings. Looking forward to the highly anticipated SpaceX IPO, the crew expressed general skepticism about navigating the ultra-volatile 15-day window before its eventual index inclusion. In fixed income, Roy discussed the 30-year yield hitting its highest point since 2007, pointing out how the massive AI narrative has largely caused equities to shrug off bond market pressures. Discussion wrapped with a look at South Korean funeral homes investing in leveraged U.S. ETFs, as well as Truth Social pulling out of bitcoin. Find out more about this episode’s guests:  Eric Balchunas and Bloomberg Intelligence: Bloomberg Intelligence [https://professional.bloomberg.com/products/bloomberg-terminal/research/bloomberg-intelligence/], Eric on Twitter [https://x.com/EricBalchunas] Todd Sohn and Strategas: strategasasset.com [https://www.strategasasset.com/], Todd on LinkedIn [https://www.linkedin.com/in/toddsohn/]

From SpaceX to the Corgi Cannon, Anything Goes

In this episode of the ETF Zoo, Dave Nadig, President & Director of Research at ETF.com, talks with Mike Akins, Founding Partner of ETF Action; Tony Dong, MSc, CETF, Founder and Owner of ETF Portfolio Blueprint; and Todd Sohn, Senior ETF & Technical Strategist, Strategas Securities.  Together the group dives into the blistering pace of the ETF market in 2026, the impending SpaceX IPO and it’s rippling effect on markets and benchmark indices, the Corgi cannon of new funds and potential implications for the industry, and more.  Prefer to watch the episode instead? You can find it over on our site [https://www.etf.com/sections/podcasts/etf-zoo-spacex-corgi-cannon-anything-goes] at or on our YouTube channel [https://youtu.be/11ZgzejPdr8]. There’s been a staggering $651 billion in new flows year-to-date, generating an implied $1.5 billion in fee revenue for the ETF industry. Akins argues that this momentum is sustainable, not necessarily because new money is flooding the market, but because of the ongoing migration from mutual funds to ETFs, particularly within active management and alternative spaces. The conversation moves into active management, including discussions of fixed income and more.  The impending SpaceX IPO remains top of mind for everyone. The discussion lingers on the fact that the S&P 500 and Nasdaq are considering changing financial viability rules to fast-track these hyper IPO companies into indexes, a move that forces passive investors to buy into potentially unprofitable, volatile assets. With companies like NVIDIA and Taiwan Semiconductor (TSM) driving the lion's share of returns in popular funds like the VanEck Semiconductor ETF (SMH) [https://www.etf.com/SMH], investors should beware of stretched valuations and the recent crop of consensus plays, according to Sohn.  The Corgi cannon of fund launches also took center stage in this week’s episode. Corgi recently filed for over 300 funds and launched 34 in a single day earlier this week. While the firm currently undercuts competitors on fees, the mood was dubious on how well an approach like this will fare. Akins is quick to point out that retail investors rarely chase small fee differences in themes that can swing significantly in either direction, suggesting that without a major distribution force for advisors, many of these niche ETFs face a tough uphill battle. The conversation closes on a shift to defensive strategies and the rise of prediction market ETFs. If you’ve never heard of the Cockroach Portfolio, prepare to be enlightened. Dong shares his version, a minimalist strategy consisting of five ETFs with low fees, rebalanced quarterly, that generates historical outperformance compared to benchmarks. Despite the allure of high-octane tech and speculative betting markets, the truth remains that the best long-term strategies are these types of straightforward, tried and true strategies even as the industry continues to churn out increasingly exotic and risky products.

DRAMatic Launches and Wall Street's Crypto Takeover

Welcome to ETF Zoo, where we check in on the latest happenings in the wild world of ETFs. The crew this week covers the liquidity crunch happening in private credit, the broadening industry embrace of bitcoin and crypto, how diversification is actually (finally!) working this year, and niche ETFs to launch recently, including the already wildly popular Roundhill Memory ETF (DRAM) [https://www.etf.com/DRAM]. ETF.com hosts Dave Nadig, President & Director of Research, and Sumit Roy, Senior ETF Analyst, are joined this week by Nate Geraci, President, NovaDius Wealth Management; Brian Moriarty, Principal, Manager Research at Morningstar; and James Seyffart, CFA, CAIA, Senior Research Analyst, Bloomberg Intelligence.  Hot Topics Covered Include:   * Private Credit Liquidity Concerns: The recent friction in private credit, despite redemption mechanisms working as intended to protect portfolios, are a cause for concern. By opening up to the retail market, asset managers now find themselves exposed to the reality of investors wanting their money back during downturns.  * The "Wall Street-fication" of Crypto: With major institutions like Morgan Stanley and Goldman Sachs launching crypto-linked products, the Zoo crew discusses bitcoin’s evolution into a standard tool for advisors with the industry focusing more on distribution and management fees. * The Rise of Targeted, Niche ETFs: The success of the Roundhill Memory ETF (DRAM)  [https://www.etf.com/DRAM]— that focuses on memory chips — demonstrates a growing demand for highly concentrated thematic plays combined with the ability to quickly launch timely, niche strategies.  * The ETF Spaghetti Cannon Is Fully Operational: At the same time, lower regulatory hurdles and the rise of white-label providers have led to declining costs to launch an ETF. This is turn has given rise to a trend where issuers launch numerous tactical products and demonstrate a ready willingness to close funds that don’t gain immediate traction. * Diversification’s Return to Form: For the first time in years, diversification is actually helping portfolios. With small-caps, value stocks, international markets, and gold outperforming the S&P 500 at various points this year, megacap tech dominance is finally giving way to a broader market rotation. Follow along with the conversation at https://www.etf.com/sections/podcasts

Gold, the Oil Trade, and Taxes

Welcome to ETF Zoo, where we check in on the latest happenings in the wild world of ETFs. The crew this week explores the surge in international flows and if $2 trillion is still on the table, the merits and myths of gold as a hedge, action in oil ETFs—including tanker shipping—and the growing dominance of active ETFs as well as regulatory action on ETF taxation.  ETF.com hosts Dave Nadig, President & Director of Research, and Sumit Roy, Senior ETF Analyst, are joined this week by Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, and Kirsten Chang, Senior Industry Analyst at TMX VettaFi.  Topics Covered Include: * Checking in on Flows and Predictions: The group discusses the massive influx of capital into ETFs, noting that nearly half a trillion dollars has already moved into the market this year. There is significant debate over whether the industry will hit a record $2 trillion in annual flows, driven largely by a class of legacy asset managers finally embracing the ETF structure. If you want more Q1 analysis, don't miss Dave Nadig's breakdown here [https://www.etf.com/sections/etf-analytics/q1-26-state-bonkers-etf-market]. * International vs. U.S. Equity: The rotation towards international equity continues, entering its 11th straight month of inflows and is currently pulling in twice the capital of U.S. equity ETFs. Is this a move by investors trying to tackle U.S. concentrations? Eric Balchunas discusses individual country investing and the larger implications. * Gold as a Non-Correlated Asset: Recent market activity has been a sharp reminder for investors that gold doesn't function as a traditional hedge but instead remains a zero-correlated asset to stocks. As more investors embrace this reality, will it change how they use gold in their portfolios? * Shipping and Oil Volatility: Sumit Roy discusses the top performing ETF, the Breakwave Tanker Shipping ETF (BWET) [https://www.etf.com/BWET], this year that's riding high on skyrocketing tanker freight futures caused by conflict in the Middle East. However, this is a complex, high-risk trade, and traditional investors should stick to more straightforward energy plays. * Active Management and Industry Consolidation: A significant portion of new ETF launches and flows are now actively managed rather than passive. This shift is driving industry consolidation, though Kirsten Chang notes that modern mergers are becoming more methodical—focused on acquiring specific tech or specialized narratives—rather than just seeking scale through legacy mutual fund businesses. Follow along with the conversation over at ETF.com [https://www.etf.com/sections/podcasts/etf-zoo-gold-oil-trade-and-taxes].

Geopolitical Shifts, Crypto Cascades, and the SEC

Welcome to ETF Zoo, where we check in on the latest happenings in the wild world of ETFs. This episode's crew discusses international flows and potential interpretations, bitcoin price movements and what it means for all investors — including on the institutional side, the SEC wielding its hammer, and the ongoing deluge of leveraged filings.  ETF.com hosts Dave Nadig, President & Director of Research, and Sumit Roy, Senior ETF Analyst, are joined this week by James Seyffart, CFA, CAIA, Senior Research Analyst at Bloomberg Intelligence; Todd Sohn, Chief ETF Strategist for Strategas; and Brent Sullivan, Editor of Tax Alpha Insider.  * International Equity Inflows and Geopolitical Shifts: Money continues to be on the move into international equities, with the intensity ramping up. Are investors "Selling America" or simply diversifying their portfolios while moving towards more traditional old economy sectors like industrials and energy amidst geopolitical tensions. * Regulatory Scrutiny of ETF Tax Advantages:  Brent Sullivan of Tax Alpha Insider discussed recent Bloomberg reports that the Treasury and IRS are looking more closely at ETF tax strategies, including 351 exchanges. * Cryptocurrency Market Volatility and the Self-Fulfilling Prophecies: Pullbacks in bitcoin prices triggered a liquidity cascade that we're still seeing the impacts of in crypto markets. Despite nearly $9 billion in outflows however, the market appears to be holding up relatively well. * Niche and Leveraged ETF Proliferation Continues: The discussion touches on the surge of filings for highly specialized products, including a Corgi company filing for a bevy of 2x single-stock and micro-niche thematic funds. And XOVR [https://www.etf.com/XOVR] continues to catch our attention as its stake in SpaceX hits new highs over 35%. * Jane Street In the Spotlight: Recent chatter has investors expressing concerns around Jane Street and its market-making activities that could be construed as market manipulation according to some. The group analyzes if there is any credence to the chatter.