(Bloomberg) -- Exchange-traded funds are “weapons of massdestruction” that have distorted stock prices and created thepotential for a market selloff, according to the managers of theFPA Capital Fund.

“When the world decides that there is no need for fundamentalresearch and investors can just blindly purchase index funds andETFs without any regard to valuation, we say the time to be fearfulis now,” Arik Ahitov and Dennis Bryan, who run the $789 millionfund, said in an April 6 letter to investors.

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

  • Critical BenefitsPRO 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
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.