ETFs are scams

So ETFs are Exchange Traded Funds and are usually upsold to people as a ‘basket of stocks’. It’s essentially a weighted, sometimes robot algo driven, investment portfolio that you can invest in. Think of it like an Stock Index that you can actually buy into.

Now that you know what ETFs are, I’m going to summarize my findings from my trash talk about ETFs. (From these articles here and here and here. I will be using the ETF XRT to make my points).

Reasons why ETFs are scams,

  1. There’s no real accountability for ETFs. The reporting practices including deliveries of ETFs aren’t adhered to. The rigor that single stock securities have to go through aren’t equivalent with ETFs. And of the data reported, the custodian usually safeguards it behind technical walls or even pay walls. So it’s definitely not for the average layman to comprehend.
  2. Of the 13F’s that are filed, more people can own shares than actual existence. Yes. For one instance, the fund manager SSGA in charge of XRT reported Shares Outstanding of 9.25 million shares. The top ten holders reported on their 13F, that they had a combined total of 42 million shares. Yea, 9 < 42. Make it make sense.
  3. For whatever reason, short interest on ETFs can exceed 100%. That means people are trading synthetics on ETFs. I’ve seen as high as 470% Short interest. It’s that retarded.
  4. There is strong causation that the manipulation of ETFs are a way to obfuscate and move short interest from the direct underlying asset such as GME and move the Short Interest to the ETF like XRT. This implies that ETFs are used to short attack indirectly a basket of equities.
  5. There is heavy evidence that ETFs can be a threshold security but no follow up of FTDs or FTRs are done to rectify the issue. Meaning, apparently no one gives a shit if you synthetically short ETFs into oblivion and never deliver the shares.
  6. And yes, they are counterfeit shares. How the fuck do you get 42 million shares owned by various funds if there is only 9 million shares outstanding? That’s 33 million shares just -made up-.
  7. Apparently ETF’s are funds and have Assets Under Management, AUM. And that AUM can have a smaller Market Cap. . . For instance, XRT had at one point an AUM of 612 million dollars, but a market cap of 489 million. So for every share that you buy, you would get more intrinsic value in AUM than in Market Cap.
  8. Point 7 above is most likely due to short interest (from point 3) creating a fake Market Cap that skews the data. So you’re not actually getting more intrinsic value, it only seems that way.
  9. Market Capitalization is fake and ETF’s should not, but are, somehow measured by this market cap. Also due to short interest and AUM, these numbers are all wrong.
  10. ETFs also use HFTs and algos, so it only perpetuates the race to zero and scalping and other shit-ass that goes with the scam of being a Flash Boi. HFTs are tools and they are most commonly used for evil or just cheating, depending on how you see morality.
  11. ETFs have shit numbers and statistics. The annual reports aren’t sifted through and many sources and websites make up numbers for various figures out-of-god-knows-where. Like where do they even get these numbers or estimates from?
  12. Buying into an ETF doesn’t guarantee you any voting rights or whatever to the underlying securities in the ETF basket. So ETFs don’t get you a vote. But also, Proxy voting in general is a scam.
  13. There are a lot of books and research saying how people are buying into this scam. How wealth managers invest in ETFs as a passive and lazy way to generate returns. Mainly because ETFs tend to out perform most retards on the market.
  14. Due to the profitability and clandestine manipulative nature of ETFs, there are more and more ETFs created and used.
  15. Eventually the market will be consumed by a bunch of ETFs commanded by Robo-Algos programmed by some Quant being fed mushrooms in the basement of some Corpo-homo-building and pretending to see the matrix of the universe and communing with god-like entities. *Ahem* I mean, ETFs will take over the market. Yea. that’s what I mean.
  16. Resulting in a made up war between proto-artificial intelligences fighting and scalping and adjusting based on their programming. Whether it be news or whatever.
  17. Ultimately the market will consist of fake robots trading fake value. Resulting in losses for everyone that’s not on the winning side. The winning side being the one that’s rigged.
  18. Any market event to totally decimate portfolio returns will result in Pension Funds, State, and public, to be destroyed. So this will ultimately fuck over your policemen, firefighters, and teachers.

Yea, that about summarizes it.

I mean, most of this shit doesn’t make sense. That’s partly because this stock market isn’t built to make sense. It’s built to confuse and swindle people. Because the robber Barons of the 1920’s got away with it and they opened up shop yet again. These hucksters are just selling you half a banana puddin’ and calling it fresh in these markets.

“Stock market’s rigged. The United States stock market, the most iconic stock market in global capitalism, is rigged.” -Michael Lewis


Here’s a newer piece on Operational Shorting, Synthetic ETFs, and Turtles. It only adds to the fact that ETFs are in-deed a scam.

In Closing,

ETFs themselves are investment vehicles, they are the product. They don’t come with a lot of benefits when you truly see their disadvantages.

ETFs are scams with little accountability resulting in manipulative practices, under reporting, over selling, counterfeiting, no-proxy voting, and nonsensical detachment from actual values or numbers even if those numbers were reported or set by the custodian.

So, yea,

ETFs are a scam.

*Not Valid Financial, Legal, Life, or Any Advice


Here’s some nice tidbits on a congressional hearing about how robber baron’s fucked the country and ultimately the world, because -US Capital markets-.

Congressional Hearing April 1934

“The exchange is, therefore, the largest gambling house in the world.”
Mr. Sabath Congressman

Kids, Daddy needs a new reason to gamble, and the stock market is one of the most finest casinos with the best rigged seats in the haus. Shit hasn’t changed, it just looks smarter and flashier with com-pew-tahs. Democracy, Manifest. Muah!~

One thought on “ETFs are scams

Leave a Reply