Exchange Traded Funds (ETFs)

  title={Exchange Traded Funds (ETFs)},
  author={Itzhak Ben-David and Francesco Franzoni and Rabih Moussawi},
  journal={Swiss Finance Institute Research Paper Series},
Over two decades, ETFs have become one of the most popular investment vehicle among retail and professional investors due to their low transaction costs and high liquidity, taking market share from traditional investment vehicles such as mutual funds and index futures. Research has shown that in addition to the benefits of enhanced price discovery, ETFs add noise to the market: prices of underlying securities have higher volatility, greater price reversals, and higher correlation with the index… Expand
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