President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
Gas prices could rise by about 20 cents per gallon "starting tomorrow," oil analyst Andy Lipow says Monday.Oil and Gasread more
Some operators are cashing in on the CBD craze by substituting cheap and illegal synthetic marijuana for natural CBD in vapes and edibles such as gummy bears, an AP...Health and Scienceread more
Attack on Saudi oil facilities shows that 'risk is real', Chevron CEO Michael Wirth said on CNBC's "Closing Bell" Monday.Marketsread more
J.P. Morgan's chief quant says oil prices would start to hurt stock prices when they hit the $80 to $85 range.Market Insiderread more
Paul Singer and some of his fellow hedge fund hotshots may not like it, but ETFs are continuing to rake in investor cash and are on their way to another record-setting year.
In fact, the $3 trillion industry ended July with $273 billion of inflows this year, within just $13 billion of setting a new high with five months still remaining on the calendar, according to State Street Global Advisors, which tracks ETF flows.
Singer, founder of Elliott Management, told clients in a letter last week that exchange-traded funds are "devouring capitalism" as they mute the voices of small investors and mitigate the risk of large investors so long as the funds replicate the indexes they track.
The funds have exploded in recent years as the popularity of passive investing has surged and the track record for active mutual fund managers has been mostly abysmal. ETFs primarily track broad market indexes like the as well as those for bonds and commodities. They don't use high-cost managers who trade in and out of positions.
In short, it's become the preferred way to play the market during a stunning bull run that began in March 2009.
Central banks like the U.S. Federal Reserve have been keeping interest rates low and liquidity flowing since the days of the financial crisis. What's resulted has been the second-longest bull market in history, pushing the S&P 500 to a 271 percent gain, and, this year in particular, market volatility to historical lows.
"Investors are generally following the central bank money," said David Santschi, CEO of TrimTabs Investment Research, which tracks market and economic data. "It's the easiest and cheapest way."
Along with the S&P's rise has come a surge in ETF assets.
The U.S. industry boasted just shy of $1 trillion in 2010 and today holds nearly $3.1 trillion, according to XTF.com. Investors have chosen passive strategies amid the low volatility and with central banks as a backstop in case instability creeps back in.
Singer isn't the only big market name to warn about where money is headed. Some worry that if central banks tone down their interventions, financial markets could become tumultuous. The Fed is amid what it hopes is a long, gradual process of normalizing interest rates and unwinding its $4.5 trillion balance sheet of bonds it mostly accrued during its post-crisis stimulus programs.
"You have artificial prices supported by central banks, and investors are just following central bank money to buy assets and ride the wave," Santschi said. "Why pay for management and research if you can just index and get the returns?"
So far in 2017, investors have been both following the stock market higher and continuing to pile into bond ETFs as well.
Equity funds have landed $190.6 billion in new money, while fixed income has garnered $82.9 billion, according to State Street. Despite a seemingly strong desire for global diversification, U.S.-focused funds have still raked in a healthy $86.7 billion, while international ETFs have seen nearly $100 billion in inflows.
"When no one is worried, they tend to easily throw caution into the wind, ignoring risks in the market and chasing winners absent of any focus on price paid," Matthew Bartolini, head of SPDR Americas research at State Street, said in a report. "So while investors should enjoy the calm for as long as it lasts, they should also remember this is not a risk-less market."
WATCH: Paul Singer explains why he thinks ETFs are "devouring capitalism."