Comments by "" (@jmitterii2) on "The Index Fund/ETF Bubble - How Bad Is It Really?" video.

  1. So... it's not ruining the stock market yet, until it does. Got it.
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  2. The problem with ETF-ization of the market is that it can crush all names within the ETF that are more liquid. Basically, some underlying stocks have more bids and asks; more traded. Easier dump or buy than some other stocks inside the ETF. What happens is that outflows in one ETF can cause even the good stocks to get liquidated to payout cash outs of the ETFs. Entrance big, but the exit becomes small. An ETF in UK had a big impact when some underling stocks went down, and ETF withdrawals happened, it effected other stocks that were not part of the dip initially... because they were the only stocks actually liquid enough to make good on redemptions. It's why on very big up days EVERYTHING in ALL sectors go up. And on bad days particularly EVERYTHING takes a hit... even the good stuff. And if it's in the SPY or QQQ on those down days EVERYTHING literally is down... small exit... more liquid stocks are being dumped to make up for less liquid stocks.
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