As investors left developing nation stocks, dozens of ETFs, mostly emerging market ETFs, sold at huge discounts Bloomberg reported. BlackRock's iShares MSCI Indonesia Investable Mart Index Fund was included in those ETFs, trading 7 percent blow the value of its holdings Thursday. The market was simply reflecting expectations that prices would continue to decline.

Investors may be disappointed when they turn to ETFs for liquidity in times of market tumult. Citigroup stopped allowing clients to redeem large bundles of shares with ETFs but the Knight firm continued taking orders.

Panic spread to municipal bonds, leading State Street to halt redeeming shares for dealers selling municipal bond ETFs.

To check out the full story, click here. 

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE