Conference warns of rising complexity in leveraged ETFs

Frankfurt business district

Investment in exchange-traded funds (ETFs) in Europe has exploded as investors have embraced their transparency and simplicity, and industry insiders are predicting further exponential growth for the asset class. But with ETFs now deploying increasingly complex methodologies, they are not as simple and easy to understand as they first set out to be, as was highlighted at the Structured Products Art of Indexing Conference in Frankfurt on March 25.

The use of ETFs in Europe has grown at an annual r