More recently, assets in the aggregate ETFs are rising, but assets offered by leveraged ETFs and ETFs specializing in commodities are dropping. Industry experts think the drop was mainly attributed to the firestorm this section of the ETF industry received in the past few months.
Will this hurt demand in the long-term, though? These and other ETFs are popular with investors of all shapes and sizes, so we’re not talking about small potatoes. As with any product, it’s not always smooth sailing. But if there’s demand for these ETFs, then the financial industry will work to satisfy that demand. It may take sitting down with regulators to come up with an understanding.
For more stories about leveraged ETFs, visit our long-short category.
Max Chen contributed to this article.