Their products seemed to have worked as designed. What is the market scenario where these ETFs can “blow up,” and what else is blowing up with it––the entire derivatives market, just swaps, only futures? I would venture a guess that the market environment that takes down inverse and leveraged ETFs takes many more victims along with it.
I hope it doesn’t happen.
Noah Hamman is Chief Executive Officer of AdvisorShares, a Bethesda, Md.-based provider of actively managed ETFs. AdvisorShares offers 24 actively managed ETFs currently trading with over $1.8 billion in assets under management, and provides educational support to help financial advisors and investors understand the benefits of actively managed ETFs and their underlying investment strategies. Visit www.advisorshares.com to register for free weekly economic commentary, and for educational insight into the active ETF marketplace, visit www.alphabaskets.com.