Exchange-traded fundamentals
Mar 21st 2020JEREMIADS HAVE long argued that if some of the $6trn-odd of assets underpinning exchange-traded funds (etfs) are illiquid, then the funds must be too, posing a big risk to their investors. But so far there are signs of strain but not panic. During the current turmoil, some etfs are trading at a discount to their net asset value, often those that have invested in debt. But that may be because they are easy to trade, making them a better gauge of reality than the last recorded price of the underlying securities. â– This article appeared in the Finance and economics section of the print edition under the headline “Exchange-traded fundamentals”Reuse this contentThe Trust Project
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