ETFs: Overview and Recent Issues

Mon Oct 03 16:24:38 EDT 2011
By Dr. Patrick Conroy, Dr. James Overdahl, Robert Patton, and Raymund Wong


ETFs: Overview and Recent Issues was recognized for being one of the most-read articles on Thomson Reuters' Governance, Risk & Compliance website in October 2011. Thomson Reuters publishes hundreds of articles authored by external contributors on its GR&C website every month.


Exchange-traded fund (ETF) strategies continue to increase in scope, involving active management and more sophisticated financial instruments. Furthermore, the size of the ETF market has more than tripled by number of ETFs, and more than doubled by net dollar value of assets, over the past four years. The increasing flexibility and versatility of ETFs have been accompanied by claims by regulators and others of destabilizing effects on markets and potential for abuse by market professionals. Moreover, the suitability of ETFs for retail investors and even institutions has become a source of greater concern. In this NERA brief, Dr. Patrick Conroy, Dr. James Overdahl, Robert Patton, and Raymund Wong briefly outline several recent ETF issues and follow with an overview of future issues that may impact the growth of ETFs and their regulation.