The dark side of ETFs and index funds
- RECENTLY, PASSIVE ETFS AND INDEX FUNDS HAVE BECOME POPULAR AMONG INDIVIDUAL INVESTORS. IN OUR STUDY, WE INVESTIGATE WHETHER INDIVIDUAL INVESTORS BENEFIT FROM USING THEM. WITH DATA FROM ONE OF THE LARGEST BROKERAGES IN GERMANY, WE FIND THAT INDIVIDUAL INVESTORS WORSEN THEIR PORTFOLIO PERFORMANCE AFTER USING THESE PRODUCTS IN COMPARISON TO NON-USERS. SINCE THESE SECURITIES MAKE MARKET TIMING EASIER, FURTHER ANALYSIS REVEALS THAT THE DECREASE IN USERS’ PORTFOLIO PERFORMANCE IS PRIMARILY DUE TO BAD MARKET TIMING.
Author: | Utpal Bhattacharya, Benjamin LoosORCiDGND, Steffen MeyerORCiDGND, Andreas HackethalORCiDGND, Simon M. Kaesler |
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URN: | urn:nbn:de:hebis:30:3-579492 |
ISSN: | 1866-1238 |
Parent Title (English): | EFL quarterly : an E-Finance Lab publication |
Publisher: | E-Finance Lab e.V. |
Place of publication: | Frankfurt am Main |
Document Type: | Article |
Language: | English |
Year of Completion: | 2013 |
Year of first Publication: | 2013 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2021/01/28 |
Volume: | 2013 |
Issue: | 3 |
Page Number: | 3 |
First Page: | 6 |
Last Page: | 8 |
HeBIS-PPN: | 477235980 |
Institutes: | Angeschlossene und kooperierende Institutionen / E-Finance Lab e.V. |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |