Are ETFs in a bubble?

Discussion in 'Markets & Economies' started by rbaggio, Apr 18, 2011.

  1. rbaggio

    rbaggio Active Member Silver Stacker

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    Interesting article on p.12 of todays Fin Review.

    "Fears ETFs could trigger new crisis".

    Online link: http://afr.com/p/world/fears_etfs_could_trigger_new_crisis_gxCM8XxGME5bnmaKTTg0ZJ
    (registration required)

    Some interesting quotes from the article:

    (ETFs) ..... have enticed investors into the soaring commodities markets, allowing them to enjoy huge returns from the rising price of oil, gold and silver in recent years.

    Chairman of the Financial Stability Board .... said ETFs had all the hallmarks of a bubble waiting to burts and needed close monitoring. "ETFs are reminiscent of what happened in the securitisation market before the crisis" .....

    ETFs and index funds have taken about a fifth of the US fund market.
     

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