RT Journal Article
SR Electronic
T1 All Are Not Created Equal: <em>An Exploration of ETF Asset Growth</em>
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 49
OP 61
DO 10.3905/jii.2012.3.3.049
VO 3
IS 3
A1 Pauline Shum
A1 Ken Y. Chen
YR 2012
UL https://pm-research.com/content/3/3/49.abstract
AB 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 article, 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 is 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.TOPICS: Exchange-traded funds and applications, portfolio construction, mutual fund performance