iShares says ETFs backed by derivatives should be renamed
Call for new labels as Jack Reed, senator for Rhode Island, notes that ETFs have been labelled the "new weapons of mass destruction"
An iShares managing director told a US Senate hearing on October 18 that exchange-traded funds (ETFs) that use derivatives should not be called ETFs.
"Some sponsors have introduced new products of increased complexity that carry greater risk and may not be appropriate for retail 'buy and hold' investors," said Noel Archard, managing director at BlackRock's ETF business iShares, in his testimony to the Senate Committee on Banking, Housing and Urban Affairs.
"Products that raise such concerns
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