Do ETF have an influence on the market when they buy large blocks?
ETF’s Buying Power and its Effects on the Market
Although last year, MarketWatch, reported that the Bank of America was warning against the rise of ETFs and their distortion of the stock market, the general consensus is that they are only a small part of the broader market. In comparison to other securities, ETFs are not as large and so, many experts are less concerned.
Furthermore, their inherent diversification, and ability to diminish risk means that it can be a good choice for those wishing to invest in a more stable asset.
Tyler Mordy on ETF’s Influence on The Market
ETFs are not that large in compare to other securities, and they offer diversity and transcendent liquidity