ETF providers hit back at criticisms in wake of UBS losses

In reaction to the US$2bn of losses which came from UBS' ETF trading desk, there have been accusations about the nature of ETFs. Terry Smith, chief executive of Fundsmith, who has been vocal in speaking out against ETFs, was reported in the Independent as saying: "perhaps they should be banned. Or if not they should be regulated all the way until they are little more than index-tracking funds." While pointing out that ETFs are in fact index-tracking funds, one London-based ETF head said: "Rogue traders have managed to lose money in many types of instrument over the years. "I don't...