Speaking at the Inside ETFs conference this week in Florida hosted by Index Universe, Sauter debunked the myth that ETFs are responsible for higher volatility in the market.
“We have looked at systemic problems because of volatility we’ve seen in the marketplace. We really don’t think they have. We think macroeconomic events created that volatility. We think ETFs are a great investment product for investors to gain low-cost, broadly diversified exposure to the market,” Vanguard’s indexing guru told CNBC.
“We don’t believe concerns [ETFs] are creating distortions in markets are correct,” Sauter said. [Do ETFs Really Exacerbate Volatility?]
Vanguard Total Market Bond ETF (NYSEArca: BND)
