Examining the Performance of Indian Exchange Traded Funds (ETFs)
Exchange traded funds (ETFs) are known to be a highly attractive mean of investment in today’s financial markets. The present study is an attempt to explain the risk and return features of Indian ETFs and their trading and expense characteristics. The performance of ETFs is measured and compared...
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Online Access: | http://www.ejbe.org/EJBE2016Vol09No18p061SETHI.pdf |
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doaj-9176e48bb8db45a39bd668d3a02271ec2020-11-25T02:37:29ZengAla-Too International UniversityEurasian Journal of Business and Economics 1694-59481694-59722016-11-01918617910.17015/ejbe.2016.018.04Examining the Performance of Indian Exchange Traded Funds (ETFs)Naman SETHI0Chaudhary Devi Lal UniversityExchange traded funds (ETFs) are known to be a highly attractive mean of investment in today’s financial markets. The present study is an attempt to explain the risk and return features of Indian ETFs and their trading and expense characteristics. The performance of ETFs is measured and compared with their underlying indices. It is found that they underperformed the indices, the reasons being they load their investors with extra risk than their underlying indices. Further, it is found that tracking error is having a positive relationship with expenses and risk of ETFs. Interestingly, the average number of trades and the lagged return of previous day do not affect the volume of shares. The study uses daily closing prices, intraday high and low prices and the volume of the traded shares of 10 ETFs listed on the National Stock Exchang for the period 1st July, 2010 to 30th June, 2015. The non-included ETFs suffer from the restrictions of non-availability of historical prices for at least five years. http://www.ejbe.org/EJBE2016Vol09No18p061SETHI.pdf |
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DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Naman SETHI |
spellingShingle |
Naman SETHI Examining the Performance of Indian Exchange Traded Funds (ETFs) Eurasian Journal of Business and Economics |
author_facet |
Naman SETHI |
author_sort |
Naman SETHI |
title |
Examining the Performance of Indian Exchange Traded Funds (ETFs) |
title_short |
Examining the Performance of Indian Exchange Traded Funds (ETFs) |
title_full |
Examining the Performance of Indian Exchange Traded Funds (ETFs) |
title_fullStr |
Examining the Performance of Indian Exchange Traded Funds (ETFs) |
title_full_unstemmed |
Examining the Performance of Indian Exchange Traded Funds (ETFs) |
title_sort |
examining the performance of indian exchange traded funds (etfs) |
publisher |
Ala-Too International University |
series |
Eurasian Journal of Business and Economics |
issn |
1694-5948 1694-5972 |
publishDate |
2016-11-01 |
description |
Exchange traded funds (ETFs) are known to be a highly attractive mean of
investment in today’s financial markets. The present study is an attempt to explain
the risk and return features of Indian ETFs and their trading and expense
characteristics. The performance of ETFs is measured and compared with their
underlying indices. It is found that they underperformed the indices, the reasons
being they load their investors with extra risk than their underlying indices. Further,
it is found that tracking error is having a positive relationship with expenses and risk
of ETFs. Interestingly, the average number of trades and the lagged return of
previous day do not affect the volume of shares. The study uses daily closing prices,
intraday high and low prices and the volume of the traded shares of 10 ETFs listed
on the National Stock Exchang for the period 1st July, 2010 to 30th June, 2015. The
non-included ETFs suffer from the restrictions of non-availability of historical prices
for at least five years. |
url |
http://www.ejbe.org/EJBE2016Vol09No18p061SETHI.pdf |
work_keys_str_mv |
AT namansethi examiningtheperformanceofindianexchangetradedfundsetfs |
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1724795346514608128 |