Authored by Sumit Roy via ETF.com,
Can an exchange-traded fund get too big for its index? That's the question investors in one popular gold miner ETF are grappling with after rapid asset growth pushed it to significantly deviate from its underlying index.
Over the last several weeks, two years after Howard Marks first brought attention to the topic with a letter in which he asked "What Would Happen If ETF Holders Sold All At Once?" some investors have once again quietly voiced concern about the inordinate and rising influence passive investing in general, and ETFs in particular, exert on stocks but especially on fixed income securities, including illiquid bonds and loans.