House 39 is an ETFI watch a few hundred stocks, so yesterday I decided to check the depth on all of them.
House 39 is active IE small block pairs trades ( Multiples when there is volume) in almost every venture traded resource stock. Of 50 stocks trading 5 cents and over they were active in 45 of them... These are day orders and are replaced every morning and updated when there is volume or additional orders are placed...
house 39 has a small representive position in most of the venture market and simply mirrors what is happening .... Likely the ETF simply holds the funds invested in the ETF and pays out any redemptions based on this reflected price.
Near as I can figure they have been active for several years.
To name just a few that have pairs trades entered daily:
DVN, AZX, CCE, CEM,CKK,CMB,CTG,CVN,DEI,DRV,EDW,EKG,EMB,ENP,EXS,FNC,RGC,REC,RCR,
The impact of this is neglegible unless they are the only trade of the day... I have not noticed 39 hitting the bid or ask....
If the ETF does not have all the funds in the market that are invested in the ETF then they are at risk if the venture market rises and would profit hansomely if the venture market falls. Maybe this is why the venture market chart looks like it does, considering there are multiple ETF that operate the same way.
A good example of this is HOU which initially came to the market at $20.00 when oil was at $80.00 and is supposed to reflect double the % change in oil. It has been rolled back 1 for 5 and now trades at about $5.00 with oil in the $100 range... Clearly if you bought HOU and held it with oil up $20 since the inception of HOU, you have lost 97% of your money.
I think the ETF have done a similare thing with the Venture market....JMHO