- There were several investigations from market regulators on the impact of ETFs on markets in times of turmoil, as well as on more general topics such as possible issues related to illiquid holdings within an ETF's underlying index.
- One of the major claims from the critics is that the managers of passive products don’t have an opinion on markets or companies, as they “simply” buy the constituents of an index with the same proportion as in the index.
- Active managers also use a quantitative analysis to select groups of companies on which they will run further qualitative analysis.
For further details see:
Does The Active Vs. Passive Discussion In The ESG Segment Help To Guide Investors?