Exchange-traded fund (ETF) strategies continue to increase in
scope, involving active management and more sophisticated financial
instruments. Furthermore, the size of the ETF market has more than
tripled by number of ETFs, and more than doubled by net dollar
value of assets, over the past four years:
Notes and Sources: Data are from
BlackRock's ETF Landscape Industry Review, End of Q12011
available online at http://www.blackrockinternational.com/content/groups/internationalsite
/documents/literature/etfl_industryreview_q111.pdf.
The increasing flexibility and versatility of ETFs have been
accompanied by claims by regulators and others of destabilizing
effects on markets and potential for abuse by market professionals.
Moreover, the suitability of ETFs for retail investors and even
institutions has become a source of greater concern. We briefly
outline several recent ETF issues and follow with an overview of
future issues that may impact the growth of ETFs and
