Should you fear the ETF?

Exchange-traded funds have suddenly become scary—at least to some in the investment community.

“It may be time to re-examine the entire ETF ecosystem,” Securities and Exchange Commissioner Luis Aguilar said at the opening of the SEC’s Investor Advisory Committee meeting in October.

“Now is the time to be asking the hard questions about ETFs,” his fellow commissioner Kara Stein told an audience at Harvard Law School in November, adding that in stressed markets ETFs “break down in ways that we do not completely understand.”

 

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Written By: Ari I. Weinberg

 

December 10, 2015 In: Financial Articles Comments (None)