Companies producing exchange traded fund (ETF) products are now promoting them as a ‘go to’ liquidity source in volatile markets.
BlackRock exchange traded funds business, iShares, has pointed to a 300 per cent increase in trading volumes as demonstrating the attraction of ETFs as a liquidity source during times of market uncertainty.
iShares managing director, Mark Oliver, said increase in ETF trading at such times stood as testimony to their structure and robustness.
"Investors clearly understand the benefit of being able to move in and out of positions effectively using ETFs," he claimed.
