George Mussalli, CIO and Head of Equity Research, was quoted in the Financial Times on “Tracker funds in the balance amid sector reclassifications.”

“ETFs now clearly cause mispricings in equities. The effect was not as noticeable earlier in the evolution of ETFs due to the popularity of market cap-weighted ETFs. But with the advent of smart beta and thematic ETFs, their influence can be seen much more clearly on the prices of underlying stocks.”