Fundamental defects become apparent in a wildly popular financial
product as market gyrations increase:
“At issue is one of
Wall Street’s most popular products ever. Investors have poured hundreds of
billions of dollars into ETFs over the past decade, drawn by low fees and the
prospect of being able to buy or sell a mutual-fund-like product whenever they
want like a stock. But trading records and conversations with investors show ETFs
couldn’t keep that promise when the Dow Jones Industrial Average dropped more
than 1,000 points in the first minutes of trading on Aug. 24.”
Related:
The growing popularity of ETFs may be affecting financial
market stability in the US:
http://www.wsj.com/articles/stock-market-tumult-exposes-flaws-in-modern-markets-1440547138