“There is so much more education that needs to be done about what an ETF is even among advisers – forget about individual investors,” Motsenbocker said.
Last week, a Senate subcommittee looked into derivatives-based, leveraged and inverse ETFs. Industry leaders, including Noel Archard, managing director of BlackRock‘s (NYSE: BLK) iShares, feel that clients and traders need to be more educated about the products’ investment and structural risks. [Previewing the Senate Subcommittee Hearing on ETFs]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.