Product innovation has recently flourished in the ETF market, , as well as in the market for close substitutes of ETFs such as ETNs or ETVs, which are essentially debt products (while ETFs are funds 4 ), extending the asset class beyond its initial plain-vanilla standardised nature. Some new products are archetypes of this trend (leveraged ETFs, inverse ETFs, and leveraged-inverse ETFs 5 ), although as yet they represent only a tiny fraction of the market, around 3% of total. The first ETF of speculative grade corporate loans was also recently launched. The complexity and opacity characterising these innovations warrants closer surveillance as.
