WisdomTree, an exchange-traded fund sponsor and asset manager, has written an open letter responding to a critical ETF industry analysis from the Kauffman Foundation.
"We believe the Kauffman Foundation’s report reflects a serious misunderstanding of the structure and operation of ETFs and is perpetuating a series of misconceptions in the mainstream media," says Bruce Lavine, WisdomTree president and chief operating officer. "We found the primary conclusion of the report, namely that ETFs might collapse because of the ability to short them, to be completely groundless."
Lavine says it is important for investors to understand the ETF structure so that their options are not limited to structures with higher fees, less liquidity, less tax efficiency, less transparency and less overall flexibility.
