Loading ...A long time ago Jim Dines said the ETFs would cause higher volatility. Because of them, he said the next general market correction should be very sudden and deep. Opposite in a bull mkt. Think about the PMs in first half 2016. STRAIGHT UP!! I was calling it a reverse crash. Many miners like AG went from $2 to $20. So now down to $10.
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As mentioned, the first ETF (the S&P SPDR) began trading on Jan. 1, 1993. This fund currently has over $86 billion in assets under management and trades a quarter-billion shares on an average day.
While ETFs do offer very convenient and affordable exposure to a huge range of markets and investment categories, they are also increasingly blamed as sources of additional volatility in the markets. This criticism is unlikely to slow their growth considerably, though, and it seems probable that the importance and influence of these instruments is only going to grow in the coming years.
http://www.investopedia.com/articles/exchangetradedfunds/12/brief-history-exchange-traded-funds.asp