ETFs

Liquidity questions plague ETF market, warns Moody’s

Exchange traded funds have boomed in recent years, but investors may face troubles during next sustained market rout

The fast-growing exchange traded fund industry has yet to be tested by a prolonged bout of market turbulence, according to a new report from Moody’s Investors Service.

The US ETF industry has grown almost five-fold in the past decade to nearly $4tn in assets. Its rapid expansion has coincided with one of the longest-running bull markets in history.

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