ETFs, Ticker-Tapes, and Black Days
Are the bears on the prowl? Photos: Alamy, Aurora Photos, Getty Images. Source: Bloomberg Last week’s market mayhem was made worse by some of the innovations we’ve created to try to control risk. Exchange Traded Funds allow investors to buy and sell large baskets of securities in real time—except when they don’t. Last Monday some of the largest and most diversified ETFs opened down over 30% from their previous close—way below where they should have been based on their holdings. When the market sold [...]