: They have attracted the attention of regulators in Europe and the United States, who are looking at the potential risks they pose to individuals and the financial system, according to Euro News. The biggest concern regulators have is do people know what they’re buying And I think that the right area of concern, Rachel Lord, Black Rock iShares head for EMEA told Reuters in an interview. The types of funds in the regulatory crosshairs are all so-called smart beta funds, which can mimic more complex investment strategies for a much lower cost, and which have gained in popularity among investors. The problem is there are too many things under the guise of smart beta, it a very broad church. Exchange-traded funds trade like a stock but provide investors with low-cost access to an index, asset or basket of assets. Black Rock is the world biggest provider of exchange-traded products, running $1.1 trillion across 700 funds globally.
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