Passive Mutual Funds and ETFs: Performance and Comparison

39 Pages Posted: 22 Jun 2018

See all articles by Edwin J. Elton

Edwin J. Elton

New York University (NYU) - Department of Finance

Martin J. Gruber

New York University (NYU) - Department of Finance

Andre de Souza

St. John's University - Department of Economics and Finance; New York University (NYU) - Department of Finance

Date Written: May 30, 2018

Abstract

Over 26% of investment company assets are held in passive managed vehicles. Thus, it is important to understand what affects the performance of passive vehicles and how to choose among the multiple passive options following any index. This paper examines the factors that are important in explaining differences across funds following the same index and demonstrates how to select a passive vehicle that has a high probability of having the best performance in the following year.

Suggested Citation

Elton, Edwin J. and Gruber, Martin J. and de Souza, Andre, Passive Mutual Funds and ETFs: Performance and Comparison (May 30, 2018). Available at SSRN: https://ssrn.com/abstract=3192164 or http://dx.doi.org/10.2139/ssrn.3192164

Edwin J. Elton

New York University (NYU) - Department of Finance ( email )

44 West 4th Street
Ste 9-190
New York, NY 10012-1126
United States
212-998-0361 (Phone)
212-995-4233 (Fax)

Martin J. Gruber (Contact Author)

New York University (NYU) - Department of Finance ( email )

44 West 4th Street
Ste 9-190
New York, NY 10012-1126
United States
212-998-0333 (Phone)
212-995-4233 (Fax)

Andre De Souza

St. John's University - Department of Economics and Finance ( email )

101 Astor Place, #244
New York, NY 10003
United States

New York University (NYU) - Department of Finance ( email )

Stern School of Business
44 West 4th Street
New York, NY 10012-1126
United States

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