Why we should fear ETFs' huge contribution to bank profits

ETFs

Fundsmith CEO Terry Smith was a vocal critic of ETFs last year.

He is still convinced many of the vehicles, especially synthetic ETFs, are being mis-sold and wants better labelling for the products.  Here he gives his latest views on the ETF industry and in particular his concern about the percentage of banks' profits generated by the these investments. "Last year I warned about the perils of ETFs. This was followed by warnings from amongst others, the Bank of England, the Financial Services Authority, the International Monetary Fund and the US Securities and Exchange Commission in a rare example of closing the door on a stable which may still con...