Brexit ETF Trading Stays Comfortably Numb

Brexit ETF Trading Stays Comfortably Numb by Dave Nadig, FactSet

When markets get frothy, ETFs generally get a lot of heat, in multiple ways. Here’s the literal line from a stump speech I give regularly on the fragile nature of our equity markets:

“When volatility spikes, people generally trade risk-on or risk-off. ETFs are a fantastic way to do that, so we see big spikes in the value traded in ETFs relative to the rest of the equity market during vol-spike days.”

In fact, I use a chart of the August 24, 2015 Flash Crash to illustrate this effect:

Brexit ETF Trading

Honestly, this correlation has been so...