Bruce Simon, Chief Investment Officer at Ballentine Partners, was quoted in a recent article in Reuter’s: “Analysis: ETFs may be a factor in late-day market volatility.” The piece describes the potential impact of exchange traded funds on market correlations and late-day market movements.
“There could be a great impact on the underlying security as the number of ETF investors grows,” noting the SPDR gold trust ETF (GLD.P), which has to buy physical gold when volume rises. “There’s some school that thinks that’s actually driving the price of gold higher, and it probably is.”
