Examining how ETFs triumphed in crisis

Exchange traded funds (ETFs) have been one of the investment vehicles to benefit from the financial crisis, more than doubling in size over the last four years. The question now is whether they will remain as successful in recovery. The ETF industry has thrived in recession, growing from $711bn in the dark days of 2008 to reach $1,470bn by the end of April, according to BlackRock. The products proved their mettle during the crisis. “The over-the-counter derivative markets dried up in the crisis,” said Chris Sutton, investment analyst at Towers Watson. “The ETF market didn’t. ETFs ...