When ‘Trillions Of Dollars’ Goes ‘Blind’: Howard Marks Is Worried About ETFs & Passive Investing

When ‘Trillions Of Dollars’ Goes ‘Blind’: Howard Marks Is Worried About ETFs & Passive Investing

As a product of the last several years, ETFs’ promise of liquidity has yet to be tested in a major bear market, particularly in less-liquid fields like high yield bonds. That's from Howard Marks and it echoes something he's been saying for years. Namely that an ETF promises intraday liquidity even as in many cases the assets underlying the ETFs are not in fact liquid. As Marks put it back in 2015: The ETF can’t be more liquid than the underlying, and we know the underlying can become highly
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