The world’s biggest exchange-traded fund (ETF) provider, iShares, is starting a campaign for more transparency in the market for these products and says it will hold client events across Europe to promote its views.
The company, which is owned by BlackRock, recently released a report proposing a new classification system for exchange-traded products, according to the asset class they are invested in. It is also proposing a framework for assessing the risk of different types of ETFs and a suggested checklist that clients should ask of potential ETF providers.
The reputation of ETFs has been damaged in recent weeks by association with the UBS rogue trader scandal. There are also concerns that synthetic ETFs, which rely on derivatives, pose a risk to the financial system.
iShares controls about 40% of the global ETF market.
©2011 funds europe
