Abstract

http://ssrn.com/abstract=2022442
 


 



The Dark Side of ETFs


Utpal Bhattacharya


Indiana University - Kelley School of Business - 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

December 19, 2013


Abstract:     
Do ETFs, one of the most popular investment products in recent times, benefit individual investors? Using data from one of the largest brokerages in Germany, we find that individual investors do not improve their portfolio performance while using these products. As these securities make market timing easier, we investigate whether this is primarily due to bad market timing. Our answer is yes. We find that the improvement in security selection caused by the use of ETFs is frittered away by bad market timing.

Number of Pages in PDF File: 48

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: May 12, 2014

Suggested Citation

Bhattacharya , Utpal and Loos, Benjamin and Meyer, Steffen and Hackethal, Andreas, The Dark Side of ETFs (December 19, 2013). Available at SSRN: http://ssrn.com/abstract=2022442 or http://dx.doi.org/10.2139/ssrn.2022442

Contact Information

Utpal Bhattacharya (Contact Author)
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States
812-855-3413 (Phone)
812-855-5875 (Fax)
HOME PAGE: http://www.kelley.iu.edu/ubhattac/

Benjamin Loos
Goethe University Frankfurt - Department of Finance ( email )
Grüneburgplatz 1
Frankfurt am Main, 60323
Germany
Steffen Meyer
Goethe University Frankfurt - Department of Finance ( email )
Grüneburgplatz 1
Frankfurt am Main, DE 60323
Germany
Andreas Hackethal
Goethe University Frankfurt - Department of Finance ( email )
House of Finance
Grueneburgplatz 1
Frankfurt am Main, Hessen 60323
Germany
+49 69 79833700 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 3,730
Downloads: 682
Download Rank: 19,504

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.437 seconds