Money For the Rest of Us
Money For the Rest of Us
J. David Stein
Did ETFs Pass the 2020 Market Collapse Stress Test?
22 minutes Posted Aug 26, 2020 at 9:19 am.
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Show notes

How did ETFs function during the 2020 market sell-off and did the indexing bubble burst? What ETF structures failed the stress test and which passed.

  • Why were some investors, like Michael Burry, concerned about an indexing bubble
  • What are ETF risks such as flash crashes
  • How did equity ETFs function during the spring 2020 sell-off and how they can act as shock absorbers
  • What were some of the challenges that bond ETFs faced in March 2020
  • How the rise in bond ETFs is leading to changes in how bonds are traded
  • Why leveraged ETFs and oil-linked ETFs failed the stress test
  • What caused the dysfunction in the U.S. Treasury market in March 2020
  • What are the advantages of ETFs and why they are still a good product for long-term investors


Thanks to The Great Courses Plus and Chili for sponsoring the episode.

For show notes and more information on this episode click here.