Fundsters in the exchange-traded mutual fund business facing worried
advisors and investors in the wake of recent scandals may want to
take a look at Chuck Jaffe's latest column. The MarketWatch
that the ETF insider trading case
with the ex-Goldman trader and the synthetic ETF trading mistakes at
UBS have led to "wildly overblown" concerns about ETFs.
"The fact that ETF trades happen independent from the underlying
securities has made most observers conclude that trading in these
securities is not to blame for events like the Flash Crash," Jaffe
writes. "ETFs are the bag -- the vehicle by which the underlying
securities are trading. Investors may wind up holding the bag in
adverse situations, but it won't be the bag's fault."
Neil Anderson, Managing Editor
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