Non-transparent ETFs are appealing for managers looking to shield their strategies from front-running or replication from rivals
An effort by investment giants including State Street, Vanguard, Fidelity and Invesco to redefine the $4 trillion U.S. exchange-traded fund universe has the industry’s smaller players bristling.
In a sign of how topsy-turvy financial assets are right now, risky high-yield bond ETFs have become relative havens and investors are fleeing government debt funds as fast as they can.
Cash prices in some of the most actively traded bond funds are now at steep discounts to the value of their underlying assets. The havoc is reigniting arguments around fixed-income ETFs, which trade much more liquidly than the assets they hold.