One subset of these “Some worry” articles is how many people say ETFs are driving the stock market. Balchunas said, “Blaming ETFs for the rise of the stock market is like blaming Nickelback for the rise of MP3s.”
The conversation was wide-ranging, touching on many of the media’s misconceptions about ETFs, how ETFs compete with active managers, the age-old question on how much passive investing the market can absorb, and how ETFs are like vampires, gremlins and many other classic Balchunas metaphors.
Enjoy this week’s conversation with Eric Balchunas.
This article has been republished with permission from Wisdom Tree.