, Columnist
Seth Klarman Shows Real Danger With ETFs
When all this passive money chases the biggest players, can bubbles be far behind?
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Many analysts have spent years criticizing exchange-traded funds.
They’ve become louder over the years as ETFs became increasingly dominant, siphoning off a growing proportion of overall investor money in funds. This is especially true of fixed-income ETFs, which have been rapidly gaining traction and have the added complication of trading like stocks but tracking less-active bonds.