Innovations in Financial Products: Conventional Mutual Index Funds versus Exchange Traded Funds

Agapova, Anna

doi:10.2139/ssrn.890451

Cited by 6 publications

(5 citation statements)

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“…First, we provide new insights into the performance of European index funds and ETFs. Most current studies are based on US funds and attribute fund performance to fund expenses, which are measured by expense ratios and organisational structures (see, e.g., Elton et al, 2002;Poterba and Shoven, 2002;Blume and Edelen, 2004;Elton et al, 2004;Gastineau, 2002, 2004and Agapova, 2009). However, it is currently not known what the relative importance of these factors is in explaining the performance of passive funds listed in Europe.…”

Section: Introductionmentioning

confidence: 99%

The Performance of European Index Funds and Exchange‐Traded Funds

Blitz¹,

Huij²,

Swinkels³

2012

Euro Fin Management

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European index funds and exchange-traded funds underperform their benchmarks by 50 to 150 basis points per annum. The explanatory power of dividend withholding taxes as a determinant of this underperformance is at least on par with fund expenses. Dividend taxes also explain performance differences between funds that track different benchmarks and time variation in fund performance. Our results imply that not only fund expenses, but also dividend taxes can result in a substantial drag on mutual fund performance.

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Section: Introductionmentioning

confidence: 99%

The Performance of European Index Funds and Exchange‐Traded Funds

Blitz¹,

Huij²,

Swinkels³

2012

Euro Fin Management

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“…The study revealed that individual's base their stock purchase decisions on classical wealth-maximization criteria combined with diverse other variables. They do not tend to rely on a single integrated approach (Agapova, 2006…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Investors’ Preference Towards Mutual Fund: An Analytical Evidence From Kathmandu Valley

Kandel¹

2020

Pravaha

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This paper analysis investors’ preference towards mutual fund. The study was conducted inside the Kathmandu valley. In terms of familiarity with the various financial securities currently available in the Nepalese capital market, investors have high familiarity with fixed deposits, medium familiarity with shares and low familiarity with bonds and debentures and money market instruments. Incase of the preference for the structure of the mutual fund, more than two-third of the total respondent were in favor of Close Ended Mutual Funds. Potential investors of mutual funds prefer family members followed by self-analysis as a medium for getting understanding to create the awareness of mutual funds; TV Advertisement and Print Newspaper are effective, as these sources are preferred by the potential investors. This study concludes that mutual funds could be an admirable institution for bridging the gap between the individual savers and the established business in Nepal. Investors are showing more interest in mutual fund these days.

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“…Interestingly, Johnson (2009) found that a core factor for explaining tracking error was the difference in trading hours between non-US-domiciled ETFs which mimicked US benchmarks. Guedj and Huang (2008), Rompotis (2008) and Agapova (2009) focused on the coexistence and substitutability of index mutual funds and ETFs, highlighting market segmentation. Guedj and Huang (2008) observed that the mutual fund structure supplies liquidity shocks' insurance for investors, and therefore it is preferred by risk-averse and short-term horizon investors.…”

Section: Evidence On Active and Passive Managementmentioning

confidence: 99%

“…Rompotis (2008) states that although both structures deliver similar solutions, conservative equity and low risk-averse mutual funds investors together with professional investors who cannot use derivatives have a preference for ETFs, whilst conventional retail investors usually avoid ETFs. Likewise Agapova (2009) explained that even though ETFs and index mutual funds are seen as perfect substitutes, they cannot be categorised as such, owing to structural variations leading to the so-called 'clientele effect'. Guedj and Huang (2008), Svetina and Wahal (2008) and Agapova (2009) concur that the existence of both vehicles resulted into enhanced market completion.…”

Section: Evidence On Active and Passive Managementmentioning

confidence: 99%

“…Likewise Agapova (2009) explained that even though ETFs and index mutual funds are seen as perfect substitutes, they cannot be categorised as such, owing to structural variations leading to the so-called 'clientele effect'. Guedj and Huang (2008), Svetina and Wahal (2008) and Agapova (2009) concur that the existence of both vehicles resulted into enhanced market completion. Specifically Svetina and Wahal (2008) remark that approximately only 17% of the ETF universe compete directly with index mutual funds.…”

Section: Evidence On Active and Passive Managementmentioning

confidence: 99%

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Active versus Passive Investing: An Empirical Study on The US and European Mutual Funds and ETFs

Pace¹,

Hili²,

Grima³

2016

Contemporary Issues in Bank Financial Management

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Purpose À In the build-up of an investment decision, the existence of both active and passive investment vehicles triggers a puzzle for investors. Indeed the confrontation between active and index replication equity funds in terms of risk-adjusted performance and alpha generation has been a bone of contention since the inception of these investment structures. Accordingly, the objective of this chapter is to distinctly underscore whether an investor should be concerned in choosing between active and diverse passive investment structures. Methodology/approach À The survivorship bias-free dataset consists of 776 equity funds which are domiciled either in America or Europe, and are likewise exposed to the equity markets of the same regions. In addition to geographical segmentation, equity funds are also categorised by

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Innovations in Financial Products: Conventional Mutual Index Funds versus Exchange Traded Funds

Cited by 6 publications

References 0 publications

The Performance of European Index Funds and Exchange‐Traded Funds

The Performance of European Index Funds and Exchange‐Traded Funds

Investors’ Preference Towards Mutual Fund: An Analytical Evidence From Kathmandu Valley

Active versus Passive Investing: An Empirical Study on The US and European Mutual Funds and ETFs

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