Some market observers have argued that sophisticated investors, such as institutions, will be able to make an informed decision through backtested data.
“The more history you can provide, the better equipped an investor is to understand an index and make a decision,” Bill Belden, head of product development at Guggenheim Investments, said in the article.
Nevertheless, Belden notes that the FINRA ruling will not be a “game-changer” as institutional investors know the difference between backtested data and live performance expectations.
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Max Chen contributed to this article.