ETFs - potentially useful and straightforward, and yet potentially misunderstood, opaque and risky
The world of Exchange Traded Funds (ETFs) looks much different now than it did two decades ago when the first ETF was launched - and ETFs have evolved to become a massive mover of the markets.
There have been enormous structural changes in the market over the years, and increased investor demand has led to explosive growth in the number of ETFs. At the end of 2000, there were just 92 ETFs globally; by the end of 2010 there were close to 2,500.
Just within the past 12 months, the combined assets of the nation's Exchange Traded Funds increased by $289 billion, or 28%. ETF trading volume accounted for up to 40% of all equity dollar volume in 2012.
In this new white paper by Mark Peters, CFA, and Justine DeCoste, we examine the risks of ETFs for both individual investors and the broader market as a whole, and Federal Street's view on the role of ETFs in our clients' portfolios.
Click through to read the article on our website.
|
