Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JBIS
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Index Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Index Investing

The Journal of Index Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JBIS
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

Quest for Diversification: Should U.S. Investors Venture into European ETFs?

William F. Johnson
The Journal of Beta Investment Strategies Fall 2012, 3 (2) 49-55; DOI: https://doi.org/10.3905/jii.2012.3.2.049
William F. Johnson
is a visiting assistant professor of finance in the College of Business at Louisiana Tech University in Ruston, LA.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: williamfjohnson@yahoo.com
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

The recent explosion of country- and region-specific exchange-traded funds (ETFs) has given rise to some basic questions on how to select the right ETF for a specific purpose. ETFs gained tremendous popularity with individual investors and money managers due to their ability to provide investors with diversification at a very low cost of ownership. But just as mutual funds reached a saturation point, have ETFs also reached this point where few, if any, additional ETFs are providing diversification benefits? The question to be answered in the study is whether European ETFs with higher diversification benefits require a cost of ownership premium relative to other ETFs. Using a sample of European country-specific ETFs and continental Europe ETFs, the author finds that ETFs with high expense ratios and high turnover provided a positive and significant diversification benefit to investors. European ETFs with higher fees and turnover experienced lower levels of return correlation with the SPY over the last five years. Unfortunately, those higher expense ratios and turnover levels were not significant in explaining ETF performance, leaving investors with the difficult question, Where do European ETFs fit for an investor seeking diversification?

TOPICS: Exchange-traded funds and applications, developed, statistical methods

  • © 2012 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Index Investing: 3 (2)
The Journal of Beta Investment Strategies
Vol. 3, Issue 2
Fall 2012
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Index Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Quest for Diversification: Should U.S. Investors Venture into European ETFs?
(Your Name) has sent you a message from The Journal of Index Investing
(Your Name) thought you would like to see the The Journal of Index Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Quest for Diversification: Should U.S. Investors Venture into European ETFs?
William F. Johnson
The Journal of Beta Investment Strategies Aug 2012, 3 (2) 49-55; DOI: 10.3905/jii.2012.3.2.049

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Quest for Diversification: Should U.S. Investors Venture into European ETFs?
William F. Johnson
The Journal of Beta Investment Strategies Aug 2012, 3 (2) 49-55; DOI: 10.3905/jii.2012.3.2.049
del.icio.us logo Digg logo Reddit logo Twitter logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • DATA AND METHODOLOGY
    • RESULTS
    • ANALYSIS
    • CONCLUSION
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Sign In
  • Update your profile
  • Give us your feedback

© 2022 Pageant Media Ltd | All Rights Reserved | ISSN: 2154-7238 | E-ISSN: 2374-135X

  • Site Map
  • Terms & Conditions
  • Privacy Policy
  • Cookies