A bridge too far?

As exchange-traded funds become increasingly complex and start to resemble structured products, are product providers stretching the limits too far in terms of what should constitute an ETF? By John Ferry

The backlash is already under way in the US. Until fairly recently, issuers of exchange-traded funds (ETFs) were rushing to get more and more leveraged and inverse products – which give the investor a short position – on the market. But then, in June, there came a warning from the Financial Industry Regulatory Authority, which oversees around 4,850 US brokerage firms. “Inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for longer