The debate at this year's IndexUniverse's Inside ETFs Conference centers on how to make investors understand what they are buying, Reuter's Jessica Toonkel reports.

"I always worry about the reputation of the industry," Guggenheim Investments managing director Bill Belden, told the pub. "All it takes is one issue to create a shadow on the entire industry."

The SEC is currently reviewing the use of derivatives in ETFs and is not approving any new ETFs that use derivatives, according to Toonkel.

"I am worried that if there is regulation, it won't be flexible enough to allow for the next innovative type of ETF to come to market," said State Street Global Advisors head of ETF Jim Ross, during a conference with the news wire.

Ross added that "there are over 7,000 mutual funds and they have complex products and don't need a classification system." 

Edited by: HFD


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