ETF/ETN arb
- Thread starter Jgills
- Start date
You made me curious so I made a quick search, and I found an article that say you have no chance unless you are institutional investor.
http://etf.about.com/od/etfinvestingstrategies/a/ETF_Arbitrage.htm
Comprehensible as you can't execute as fast as those investors can. They have smarter robots, faster PCs and even direct access to market.
How about
http://finance.yahoo.com/q?s=vxx&ql=1 (31.34)
vs
http://finance.yahoo.com/q?s=^vxx-iv&ql=1 (31.15)
Looks like real money ready to be picked up.
(unless there is a reason for the divergence
http://finance.yahoo.com/q?s=vxx&ql=1 (31.34)
vs
http://finance.yahoo.com/q?s=^vxx-iv&ql=1 (31.15)
Looks like real money ready to be picked up.
(unless there is a reason for the divergence
i work at an institution. i could gain access to these "smarter robots, faster PCs and even direct acccess to markets" if i developed some decent strategies.
i'm more interested in learning about etf arb strategies in different markets, i.e. etfs vs etfs is prob easiest and most competitive, etfs vs underlying equities, etfs vs underlying futures, etfs vs other underlying.
any thoughts on it?
Quote from iggy9807:
How about
http://finance.yahoo.com/q?s=vxx&ql=1 (31.34)
vs
http://finance.yahoo.com/q?s=^vxx-iv&ql=1 (31.15)
Looks like real money ready to be picked up.
(unless there is a reason for the divergence
What are the underlying instruments of these etfs? Are they totally the same? Maybe transaction fee would make it equal.
^vxx-iv is vxx's queer uncle
I was curious about this comment because of the nature of the questions you are asking. Where do you work and what do you do?
With a satisfactory answer I will post an answer to all your questions.
id prefer not to outright say the institution where i work, but im an analyst on a sales and trading desk. i split my time between equity-linked structured products and OTC equity derivs.
as a disclosure, the information i'm looking for has nothing to do with where i work or what i do, but more of my own natural curiosity and development.
as a disclosure, the information i'm looking for has nothing to do with where i work or what i do, but more of my own natural curiosity and development.