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ETF Collapse Concerns Unfounded

Short interest does not pose a problem for standard ETF shareholders, says Morningstar's Bradley Kay.

Mentioned:

Paul Justice: Hi, I'm Paul Justice, director of North American ETF research at Morningstar. Today I'm joined by Bradley Kay, the director of our European ETF research team, and we are here to talk about all the things that come with the onset of autumn--including predictions of disaster in financial markets following the financial crisis of 2008, and now new stories talking about how ETFs may equally lead to a collapse either in the market or to funds themselves.

Bradley, I am talking about a particular article that came out earlier this week that referenced some peculiarities, especially in the short interest of ETF. Are people selling short shares, that's called "Can Your ETF Collapse?"

Paul Justice does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.