Cbus warns of ETF contagion risks

Exchange traded funds (ETFs) and other passive investment products have proliferated in the last few years, providing investors with greater trading flexibility and portfolio diversification benefits at a lower cost than traditional mutual funds or actively managed products. But there are some potential pitfalls if you look closely, warns Kristian Fok, chief investment officer at Construction and Building Unions Superannuation (Cbus). Total assets held in ETFs and exchange trade…