iShares says ETFs backed by derivatives should be renamed

Capitol Hill in Washington DC
US Senate hears views on ETFs

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 incl

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