Greenberg: ETF Boosters Say 'Don’t Worry, Be Happy'

“If the very nature of these ‘creation units’ is beyond the comprehension of most investors, the actual mechanics of ETFs involve an even far more complex matrix of transactions.”


That comment by me last week about the guts of an ETF created somewhat of a stir in the blogosphere and in the ETF industry—as did the topic of the piece I had written, which was headlined: “Can an ETF Collapse?”

The piece focused on the SPDR S&P Retail ETF, which has a short position that is five times the size of the shares outstanding. It was based on the concerns and questions raised in a report by Andrew Bogan of Bogan Associates, an investment firm, about the possible dangers inherent in ETFs. » Read More