A critical perspective on ETFs
08-06-2016 | From the field
ETFs are rapidly gaining popularity, but do they ultimately benefit private investors? Using data from one of the largest brokerages in Germany, the authors in this study find that individual investors using these products do not improve their portfolio performance.
As ETFs make market timing easier, they investigate whether this is primarily due to bad market timing, and find that this is indeed the case. The study concludes that the cost benefits offered by ETFs appear to be negated in practice by bad market timing.
Read the white paper
* Bhattacharya et al, 2013, “The Dark Side of ETFs”
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From the field
Our researchers publish many whitepapers based on their own empirical studies; they also follow quantitative research done by others.
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