2013-07-03 Seeking Alpha (Felix Salmon) - Financial Innovation of the day'

[kiko]

http://seekingalpha.com/article/1532812-financial-innovation-of-the-day-winklevii-edition

Felix Salmon is not on board with the ETF plan, quelle surprise.

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[Bitcopia]

"As Peter Thal Larsen points out, you might as well buy an ETF which holds dollars."

I am astounded by the ignorance. An ETF for an inflationary store of value is very different than an ETF for a deflationary store of value. Somebody needs to enroll in ECON101.

[db]

"As Peter Thal Larsen points out, you might as well buy an ETF which holds dollars."

Well, why not? If you want to own dollars (actually own them and not just be owed them by a bank that doesn't actually have them) and don't want to handle the cash yourself then a dollar ETF is great, just like a gold ETF or a bitcoin ETF.

[Bitcopia]

"As Peter Thal Larsen points out, you might as well buy an ETF which holds dollars."

Well, why not? If you want to own dollars (actually own them and not just be owed them by a bank that doesn't actually have them) and don't want to handle the cash yourself then a dollar ETF is great, just like a gold ETF or a bitcoin ETF.

The idea of buying an ETF for an inflationary asset suggests the desire to hold it as an investment and that is just ludicrous unless your goal is to lose money.