Even a global pandemic couldn’t seem to stop the forward momentum and popularity of Exchange-Traded Funds (ETFs), which saw some record-breaking inflows last year.
In our view, ETFs demonstrated their value during this period as a source of price transparency: the bid/offer spread of fixed-income ETFs traded helped investors understand where the underlying bonds should be priced. ETFs also became a source of liquidity for some fixed-income investors during the pandemic, even though in many cases the underlying bonds were not trading. We believe some investors who may not have considered ETFs before are beginning to recognise the potential merits of the ETF structure.
Stephanie Pierce, Chief Executive Officer of Dreyfus, Mellon & Exchange-Traded Funds
Doc ID: 969000
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