ETFs must be kept simple

Evercore Pan-Asset CEO Christopher Aldous says there is an increasing supply of new, complex ETFs coming to market, offering different styles of active management and the ability to gear or short the underlying assets. He says: "Simple ETFs track main indices reliably, have low costs and are as liquid and as risky as the underlying market they track." However, he says as soon as contracts for differences, options, short sales and other financial techniques are introduced, the cost, risk and complexity of the fund are all increased. He adds: "Such products should be called Exchange ...