A Response To Jim Cramer’s ‘Why I’m Against ETFs’

August 01, 2017

As of March 16, 2017

Cramer also railed against leveraged ETFs, a point that CFRA agrees with completely. Leveraged ETFs can be volatile and create risks for investors that hold them for longer than a day.

However, inverse and leveraged ETFs had just $44 billion in assets as of May 16, according to ETF.com data. This is just 1.5% of the total $2.8 trillion in assets and, as such, is hardly representative of the broader ETF industry.

At the time of writing, neither the author nor his firm held any of the securities mentioned. Todd Rosenbluth is director of ETF and mutual fund research at CFRA, an independent research firm that acquired S&P Global Market Intelligence's equity and fund business in October 2016. He can be reached at [email protected]. Follow him at @ToddCFRA

 

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