ETFs

SEC examines August price swings in ETFs

Intensifying global growth fears sparked steep losses in markets around the world on August 24

US regulators revealed probe in a research report on December 29
US regulators revealed probe in a research report on December 29 Photo: iStock

The Securities and Exchange Commission is assessing the causes of sharp price swings in exchange-traded products and stocks on August 24.

Intensifying global growth fears sparked steep losses in markets around the world that day. Price swings triggered nearly 1,300 trading halts, which mostly affected exchange-traded funds, a product that holds a basket of assets like a mutual fund but trades on an exchange like a stock. Some of those funds traded at sharp discounts to their underlying holdings.

WSJ Logo