FYI: The U.S. stock market suffered its worst week in months this week, with major indexes dropping into correction territory for the first time in about two years. Was the phenomenal popularity of exchange-traded funds a contributing factor to the weakness or the scale of the decline?
This is a question that has been hotly debated for months, particularly as ETFs continue to be among the most widely used securities on Wall Street. While ETF advocates argue that the funds simply track the market, as opposed to leading it, skeptics have long warned that the concentration of assets within ETFs would exacerbate market moves and lead to indiscriminate selling in the event of a downturn.
Regards,
Ted
https://www.marketwatch.com/story/why-etfs-cant-be-blamed-for-the-correction-or-volatility-in-stocks-2018-02-09/print
