Connect with us

Business

ETF seeks to exploit an under-the-radar phenomenon in the stock market

Published

on

 


A new ETF launch from NightShares seeks to tap into a little-known phenomenon in the stock market that has historically generated outsized gains.

The NightShares 500 ETF seeks to replicate the strategy of buying the exchange at the 4 p.m. close, then selling the position the next day when the exchange opens at 9:30 a.m. And then rinse and repeat, because the strategy does not hold exposure to the stock market for the majority of its intraday trading hours.

A body of academic research has backed the strategy, showing that most, if not all, of the stock market’s gains over the past 30 years have been made during night trading sessions rather than during the day.

Data from Bruce Knuteson, a former quantitative trader at DE Shaw, showed that from 1991 to 2021, the S&P 500 overnight session generated a cumulative return of over 1,700%, while the intraday sessions generated a negative cumulative return. The phenomenon was also observed in international markets and several individual stocks.

“This remarkable model is robust, well-established, undisputed, and easily reproducible. You can recreate all of the plots in this article using publicly available data,” Knuteson said.

A 2021 New York Fed Overnight Effect Report stated, “despite the 24-hour nature of the market, returns do not accumulate linearly over the 24 hours.”

Now, NightShares wants to offer investors an effective way to take advantage of this proven strategy.

But ETFs won’t buy all the shares every night and sell them back the next morning because that would create a high level of transaction costs, according to NightShares. Instead, the strategies will use stock index futures and swaps to replicate the strategy.

NightShares has created two ETFs: the NightShares 500 ETF, which trades the S&P 500, and the NightShares 2000 ETF, which trades the Russell 2000 small cap index. Both ETFs are listed on the New York Stock Exchange and have a


expense ratio

by 0.55%.

“While overnight market outperformance has been identified and documented by a large body of research for some time, until now there was no easy way for ETF investors to capture value. of this phenomenon,” said the CEO of NightShares. said Bruce Lavine.

Overnight market returns


Bruce Knutson


Sources

1/ https://Google.com/

2/ https://markets.businessinsider.com/news/etf/stock-market-buy-close-sell-open-etf-nightshares-trading-2022-6

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]