FYI: As the universe of exchange-traded funds in general, and passively-managed ETFs in particular, has exploded, so have worries about market contagion. If investors panic-sell all at once, the concern goes, the massive concentrations of securities within certain funds could make markets seize up.
New research from iShares, the ETF arm of BlackRock Inc., BLK, -1.00% attempts to lay that fear to rest. The vast majority of trading happens between investors, on what’s called “the secondary market,” meaning the broader financial marketplace is not impacted.
Regards,
Ted
https://www.marketwatch.com/story/heres-why-etfs-cant-bring-down-the-financial-system-ishares-says-2019-10-07/print
