|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id2218786. ; Size: 814K
|
|
The Dark Side of ETFs and Index Funds
Utpal Bhattacharya
Indiana University Bloomington - Department of Finance
Benjamin Loos
Goethe University Frankfurt - Department of Finance
Steffen Meyer
Goethe University Frankfurt - Department of Finance
Andreas Hackethal
Goethe University Frankfurt - Department of Finance
Simon Kaesler
Goethe University Frankfurt - Department of Finance
February 15, 2013
Abstract:
Do popular investment products such as passive ETFs and index funds benefit individual investors? Using data from one of the largest brokerages in Germany, we find that retail investors worsen their portfolio performance after using these products compared with non-users. As these securities make market timing easier, we investigate whether this decrease in portfolio performance of the users is primarily due to bad market timing. Our answer is yes.
Number of Pages in PDF File: 61
Keywords: household finance, retail investors, ETFs, passive investing, active investing, security selection, market timing
JEL Classification: D14, G11, G28
working papers series
Download This Paper
Date posted: March 15, 2012
; Last revised: February 19, 2013
Suggested CitationBhattacharya , Utpal, Loos, Benjamin, Meyer, Steffen, Hackethal, Andreas and Kaesler, Simon, The Dark Side of ETFs and Index Funds (February 15, 2013). Available at SSRN: http://ssrn.com/abstract=2022442 or http://dx.doi.org/10.2139/ssrn.2022442
|
| Feedback to SSRN (Beta) |
|
|
People who downloaded this paper also downloaded:
1.
Strategic Mutual Fund Tournaments
By
Joseph Chen,
Eric Hughson, ...
2.
The Volume Clock: Insights into the High Frequency Paradigm
By
David Easley,
Marcos Lopez De Prado, ...
3.
Beta-Arbitrage Strategies: When Do They Work, and Why?
By
Tony Berrada,
Reda Messikh, ...
4.
Do Absolute Return Mutual Funds Earn Absolute Returns?
By
Bradford Jordan,
Christopher Clifford, ...
5.
How Index Trading Increases Market Vulnerability
By
Rodney Sullivan
and
James Xiong
6.
Institutional Investor Preferences and Executive Compensation
By
Joseph Mccahery
and
Zacharias Sautner
7.
Liquidity Shocks and Stock Market Reactions
By
Turan Bali,
Lin Peng, ...
8.
Matter of Style: The Causes and Consequences of Style Drift in Institutional Portfolios
By
Russ Wermers
9.
Performance Evaluation with High Moments and Disaster Risk
By
Ohad Kadan
and
Fang Liu
10.
The Impact of Financial Advisors on the Stock Portfolios of Retail Investors
By
Marc Kramer
and
Robert Lensink
|
|
|
|
