ETFs Have Helped Markets Run More Efficiently
This article was originally published on ETFTrends.com.
Company stocks used to experience large swings as prominent indexers switched up their benchmark holdings, but with the advent of exchange traded funds, these company share price distortions from the so-called index effect have diminished. According to Axioma research, the rising popularity of ETFs have helped dampen the “index effect” where stock prices are affected [...]