ETF providers hit back at criticisms in wake of UBS losses

ETF providers have dismissed claims losses allegedly caused by an ETF trader demonstrate the instruments are risky

ETFs under scrutiny

The $2 billion loss at UBS's exchange-traded funds (ETFs) trading desk has sparked accusations about the nature of ETFs.

Terry Smith, chief executive of Fundsmith, was reported in UK newspaper The Independent as saying: "Perhaps they should be banned. Or if not, they should be regulated all the way until they are little more than index-tracking funds."

While pointing out that ETFs are in fact index-tracking funds, one London-based ETF head said: "Rogue traders have managed to lose money in many

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