In a new report for LCD, Chief Investment Officer of Lehmann Livian Fridson Advisors Marty Fridson discusses the dangers presented by high-yield ETFs. The topic was the subject of a recent contentious debate between BlackRock CEO Laurence Fink and activist investor Carl Icahn at the Delivering Alpha Conference.

Icahn’s Claim

According to Icahn, high-yield ETFs are dangerous for the market. The instruments have become extremely popular investments, but Icahn contends that the underlying holdings are extremely risky and illiquid. Icahn fails to see who would buy those securities in the event of a large-scale, panicked market sell-off.

ETFs Isolated?

The other side of the argument, represented by Fink, is…

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