ETFs

Bank of America says ETF rise is distorting the stock market

Vanguard holds more than 5% in 491 of S&P 500 stocks

Bank of America says ETF rise is distorting the stock market

The number of passive investors who trade stocks via exchange-traded funds has surged in recent years in what some see as a sign of a dysfunctional market in the making, MarketWatch reports.

Strategists at Bank of America Merrill Lynch, led by Savita Subramanian, earlier this week warned in a report that the surge of ETFs is distorting the stock market and making it less efficient in the process.

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