A report released in the US blaming ETFs for market distortions and threatening market stability has been undermined by industry experts as "filled with holes".
The report by the Kauffman Foundation - a group supporting entrepreneurship and new company growth - has been dubbed "incorrect" by a range of industry experts, in relation to even basic ETF structural issues. The report, written by Harold Bradley and Robert Litan at the foundation, says the proliferation of ETFs threatens the stability of financial markets and poses systemic risks, similar to those that manifested during the "flash crash" on 6 May. Bradley and Litan say the systemic risks are twofold. One is the ease of short selling ETFs, which they claim makes them potential trigge...
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