• Christopher Hall

ETFs are the reason Markets are more Volatile Today

Exchange Traded Funds (ETFs) have increased from 3% of the market in 1995 to around 50% today. With this large, passive investment in markets has negative consequences such as indiscriminate selling. When ETFs need to meet redemption, or withdrawals from investors, they sell proportionately across the markets - like they're supposed to. However, this is very different to how you or would sell our shares, or how a Managed Fund would sell shares. It is this different method of selling shares that have increased the volatility of markets.

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