Traders work in a booth on the floor of the New York Stock Exchange, Monday, Aug. 24, 2015. U.S. investors woke up to a serious jolt Monday when the Dow Jones industrial average tumbled 1,000 points minutes after the market opened in a wave of selling that circled the globe after a historic plunge in Chinese stocks. (AP Photo/Richard Drew)

Until recently, advisors rarely heard about problems involved in trading Exchange Traded Funds in volatile markets. Then came the chaos of the stock market’s open on August 24.

During the first hour of trading that day, prices of some popular ETFs fell by more than 30 percent–five times the 6 percent decline in the S&P 500 Index. Trading-halt circuit-breakers were implemented on ETFs more than 600 times, leaving many sell orders temporarily unfillable. In fact, half of the 1,200 total circuit-breakers triggered in all securities that day were in ETFs.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.