How ETFs can promote transparency and price discovery
Yie-Hsin Hung, President and CEO of State Street Global Advisors speaks with Lynn Martin, President of NYSE Group, about how ETFs’ innovation has emerged during volatile circumstances.
Martin oversees the New York Stock Exchange (NYSE), as well as a number of electronic equity markets and options exchanges included in the group. Since its acquisition of AMEX, NYSE now accounts for two thirds of US-listed ETFs. NYSE is the world’s largest stock exchange, and home to over 2,000 ETFs.1
Being a liquid, transparent product, ETFs allow investors to gain exposure to more challenging asset classes. Amidst the COVID-19 pandemic ꟷ a hyper volatile time for underlying securities ꟷ Martin recalls how ETFs were not only trading, but also leading the price discovery process. Looking ahead, Martin foresees ETFs to be a useful form of price discovery for the crypto market, and that the market will continue to see new and interesting asset classes leverage the innovation ETFs have brought to the industry.
Celebrating 30 years of ETF innovation
2023 marks the 30th anniversary of the launch of the industry’s first US-listed exchange-traded fund. Co-created by State Street Global Advisors, the Standard & Poor’s Depositary Receipts ꟷ better known as the SPDR® S&P 500® ETF, or SPY ꟷ revolutionized index investing, liquidity, asset allocation, intermediary distribution, portfolio construction and overall market access.
Today, among the nearly 12,0002 ETFs in existence, SPY is the largest3, most liquid4 and most heavily traded5 ETF in the world. Our ETF@30 video series examines the past, present and future of ETFs ꟷ and their impact on the world’s financial markets and industries.