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.

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Metadaten
Author:Utpal Bhattacharya, Benjamin Loos, Steffen MeyerORCiDGND, Andreas HackethalORCiDGND, Simon M. Kaesler
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):License LogoDeutsches Urheberrecht