ETF Trading Volume Spikes in Market Volatility | Page 2 of 2 | ETF Trends

The investment products have stood up to the volatile swings in markets, BlackRock says. ETFs were questioned in the aftermath of the May 2010 flash crash as a large number cancelled trades involved ETFs on that wild day.

“ETPs have provided efficient and liquid access to a broad array of markets, and this is especially critical during volatile periods such as now,” the ETF manager said. “The majority of ETPs have delivered tight bid/ask spreads, minimal premiums and discounts, and tight tracking to the index.”

CBOE Volatility Index