BlackRock Chief Executive Officer Larry Fink said on Wednesday that leveraged exchange-traded funds contain structural problems that could "blow up" the whole industry one day.
Fink runs a company that oversees more than $4 trillion in client assets, including nearly $1 trillion in ETF assets. Leveraged ETFs use debt to boost returns.
"We'd never do one (a leveraged ETF)," Fink said at Deutsche Bank investment conference in New York. "They have a structural problem that could blow up the whole industry one day."
Fink made his remarks during a conversation with Deutsche Bank co-CEO Anshu Jain in a broader discussion about regulating financial companies.