A New Norm for ETF Investors?


Hi, these are really unprecedented times. The violence and the movement of the marketplace has been like nothing I've ever seen. I'm old enough to recall the bubble of 2000, the reopening of the marketplace after September 11th in 2001, and the financial crisis of 2008. With that being said, what has kind of proven itself time after time is that the resiliency of the ETF structure is really helping investors express their opinions real-time.

If you've watched what has happened in the past three to four weeks now, we have seen credit markets freeze, we've seen money market funds freeze, municipal bonds freeze as well. And what we have kind of discovered again is that the ETF structure is really kind of being the pricing mechanism for those underlying securities. So with that being said, I do feel, going forward, and clearly we've seen it already, that the ETF during stressful periods of investing will continue to be the choice for investors to express their opinions. So it may be the new norm, we did discover this in 2008, and clearly we're seeing it in the last three to four weeks.

But I do believe that eventually the underlying securities once they start transacting again will be the pricing mechanism for the ETFs, but for now it's clearly ETFs that are kind of helping the price discovery mechanism for investors. So thanks for your time, I know these are unprecedented as we discussed, but will be back to you with timely updates as appropriate. Thanks.

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