FYI: The fast-growing exchange-traded fund industry has yet to be tested by a prolonged bout of market turbulence, according to a new report from Moody’s Investors Service.
The U.S. ETF industry has grown almost five-fold in the past decade to nearly $4 trillion in assets. Its rapid expansion has coincided with one of the longest-running bull markets in history.
The unusually placid era for stocks has seen big banks retreat from their role in facilitating ETF trading, with high-speed trading firms taking their place, Moody’s said in the report, which was published Thursday. At the same time, ETF investors have become accustomed to being able to buy and sell their funds with ease.
Regards,
Ted
https://www.wsj.com/articles/liquidity-questions-plague-exchange-traded-funds-11557407087?mod=md_mf_news
