The Rise of ETFs: A Bubble in the Making?

The Rise of ETFs: A Bubble in the Making?

In December, the S&P 500 plunged, briefly falling as much as 20% below its all-time high. The U.S. stock market falling to the cusp of a bear market didn’t slow ETF (Exchange Traded Funds) investors :  nearly $50 billion inflow into U.S.-listed ETFs in December, propelling 2018 into the record books as the year with the second-largest inflows ever ($315.4 billion for the whole of 2018).

Since the flash-crash in May 2010, specific measures related to ETF’s were put in place as  ETFs played a significant part in the fall, with 68% of more than 21,000 cancelled trades coming from ETF investors. These measures included trading limits designed to prevent sudden changes in securities’ prices.

So with the continued massive inflow into ETF’s, is there a bubble in the making? Our experts give their view on the subject

Read More

Discover more insights on the Square news platform