Thursday, May 13, 2010

Flash Crash May Prove Blemish for ETFs

From Wall Street Journal

"One fourth of all ETFs saw suspicious declines after the market began its slide at about 2pm EDT."

"To be sure, ETF companies reacted quickly to the chaos, in many cases calling and emailing investors like financial advisers with instructions on how to break clearly erroneous trades and offering quick accounts of how some funds' pricing mechanisms might have been affected by a wave of faulty-seeming price quotes."

Link to the article