Do ETFs need to be more transparent?

Christopher Aldous CEO, Evercore Pan-Asset Capital Management   A better distinction is needed between what Evercore Pan-Asset define as ‘simple’ ETFs and their more complex cousins. We think ‘simple’ ETFs are those which track major indices or asset classes and where the investor’s money is properly secured. ‘Complex’ ETFs are likely to use leverage, sell short, track illiquid asset classes or are not properly collateralised and therefore present significant counterparty risk. More transparency would also help. We look for ETF providers to give a clear explanation of the ass...