Although ProShares blasted BlackRock’s proposed plan for labeling ETFs, it did agree with BlackRock’s conclusion that ETFs do not contribute meaningfully to market volatility. [Nasdaq Exec Says ETFs ‘Tempting Target’ for Market Volatility]
“We also agree with its testimony that ‘all evidence suggests that the primary cause of volatility’ lies with fundamental macroeconomic uncertainties,” ProShares said in a statement.
The firm and its leveraged and inverse ETF rival Direxion were not on the panel, although leveraged ETFs were discussed at length during the Senate hearing.
“ProShares agrees with testimony that transparency and useful, meaningful disclosure are the keys to protecting investors and regulating ETFs effectively,” ProShares said.