Discussing ETFs with Reuters

November 22, 2011

With the departure of Bill Miller from Legg Mason Value Trust (LMVTX), many in the financial media have focused recently on Miller’s legacy.  Reuters writer Herb Lash took a different slant and turned to NoLoad FundX CIO Jason Browne for insight.

In his piece, ETFs, events trip Legg Mason star Bill Miller, published on MSNBC, CNBC, and Yahoo! Finance, Lash checked off several phenomena that may have contributed to the downfall of the Legg Mason’s star manager, including the rise of exchange traded funds (ETFs). “Many people blame the high correlation and volatility on ETFs, in particular those that are leveraged or provide an inverse return on the market’s performance,” Lash reported.

Our in-house ETF expert Jason Browne told Lash how ETFs helped change the investing landscape.

“Access to ETFs has given investors a feeling that they should be more active in the market than they otherwise would be, which is adding to volatility,” said Jason Browne, chief investment officer at DAL Investment Co in San Francisco. “People are jumping on that train or jumping off that train, and it’s extenuating the moves,” said Browne, whose firm invests solely in ETFs and mutual funds.

Click here to read the full article.


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