Mark Wiedman on product risk
From ETFs Act as 'Shock Absorbers,' BlackRock's Wiedman Says · · BloombergTelevision
“BlackRock has not gone into the leveraged ETF business, for example, and there are some other structures that some might consider a little out there.”
On , Mark Wiedman, Senior MD & Head of Global Client Business at BlackRock, spoke about product risk during ETFs Act as 'Shock Absorbers,' BlackRock's Wiedman Says on BloombergTelevision.
About Mark Wiedman
In an October 2018 interview, Mark Wiedman, then global head of iShares at BlackRock, stated that ETFs act as "shock absorbers" and liquidity vehicles that allow buyers and sellers to find new prices during market stress. He said this conclusion is shared by the Financial Stability Board, the Bundesbank, and the SEC. Wiedman also discussed BlackRock's approach to ESG offerings, saying the firm charges "basically the same very low cost" for these products and that in emerging markets, an ESG-oriented portfolio "may actually outperform over the long haul." Wiedman said BlackRock has not entered the leveraged ETF business and that he does not expect a zero-fee ETF from the firm, as its revenue model is aligned with offering low-cost investing. He described the U.S. market offering at three basis points as "pretty much close to that asymptotic limit." Wiedman projected the ETF market would grow at 13 to 15 percent organically over the next five years, which he said would mean a doubling in size.