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- Title
BIRŽOJE PREKIAUJAMŲ FONDŲ (ETF) BENDROJO IŠLAIDŲ RODIKLIO TYRIMAS.
- Authors
Macijauskas, Lukas
- Abstract
As virtual discussion about passive versus active investment heats up, ETF instruments being second biggest investment vehicle (after mutual funds) in United States receive more and more attention. In this paper we perform a cross section, type and style analysis of total expense ratios (TER) of exchange traded funds. Using Database of 1020 ETFs, we find capitalization weighted average for total expense ratios of simple (non-inverse and not leveraged) ETFs are equal to 0.32 proc. Analysis shows that inverse and leveraged ETFs on average are about 3 times more expensive than simple ETFs. These numbers of total expense ratios of simple ETFs are significantly lower than in average mutual funds. This leads us to the conclusion that especially for passive investment management where cost effectiveness is critically important, ETFs are much more attractive than regular mutual funds.
- Subjects
UNITED States; INVESTMENTS; MUTUAL funds; EXCHANGE traded funds; COST effectiveness
- Publication
Science: Future of Lithuania / Mokslas: Lietuvos Ateitis, 2011, Vol 3, Issue 4, p28
- ISSN
2029-2341
- Publication type
Article
- DOI
10.3846/mla.2011.066