Vanguard's CIO Gus Sauter is challenging the exchange-traded fund industry to be "responsible" in developing new products and he's also calling for more education about the growing space.

During a speech at the IndexUniverse “Inside ETFs” conference, Sauter noted that ETFs have been blamed for a wide range of problems, from creating the May 2010 Flash Crash to contributing to ongoing market volatility. However, Sauter countered that: “ETFs are much more dominant in the U.S. market than in Germany, but market volatility in each has been the same—exactly the same.”

He added that the industry has a "responsibility to make sure the investing public is as informed about ETFs as it can be.”

AdvisorONe also covered Sauter's speech. 

Edited by: Hung Tran


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