Abstract
AbstractThis chapter discusses exchange traded funds (ETFs), which are one of the most successful financial innovations of the last two decades. A brief historical analysis of the evolution in ETF market is provided. Next, the unique characteristics and benefits, which made ETFs proliferate among investors worldwide, are discussed. Several types of ETFs are described as well as the various trading strategies available with ETFs. Then, the chapter focuses on the empirical findings of the literature in regard to the competition between ETFs and traditional mutual funds, the tracking ability of ETFs and the factors that usually affect their replication efficiency, and whether the divergence between the trading prices and net asset values of ETFs indicate future returns.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
