All are Not Created Equal: An Exploration of ETF Asset Growth

Posted: 21 May 2019

See all articles by Pauline Shum Nolan

Pauline Shum Nolan

York University - Schulich School of Business

Yongjian Chen

affiliation not provided to SSRN

Allen Kwong

affiliation not provided to SSRN

Date Written: May 2, 2012

Abstract

Exchange traded funds (ETFs) are unique pooled investments. They are traded on a stock exchange, and their shares can be created and redeemed accordingly to demand. Unlike mutual funds, ETFs appeal to both retail and institutional investors. In this paper, we examine the drivers of ETF asset growth. In particular, we compare the growth path of ETFs that track an identical underlying index. Our results suggest that individual ETF asset growth are driven not only by asset returns, but also by a host of financial/technical and investor attention variables. Importantly, the extent of the influence of specific drivers is conditional on an ETF’s growth stage and clientele. We also explore measurable factors that may influence investor attention.

Keywords: Exchange traded funds, ETFs, Asset Growth, Investor Attention, Clientele Effect

JEL Classification: G10, G00

Suggested Citation

Shum Nolan, Pauline and Chen, Yongjian and Kwong, Allen, All are Not Created Equal: An Exploration of ETF Asset Growth (May 2, 2012). https://doi.org/10.3905/jii.2012.3.3.049, Available at SSRN: https://ssrn.com/abstract=2050195 or http://dx.doi.org/10.2139/ssrn.2050195

Pauline Shum Nolan (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Yongjian Chen

affiliation not provided to SSRN

Allen Kwong

affiliation not provided to SSRN

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