| Summary: | 碩士 === 元智大學 === 財務金融學系 === 96 === This study examines the determinants of Exchange Traded Fund (ETF) starts, using 367 ETFs that are opened during the period 1993 to 2006. Several data sets are utilized in this study, including Center for Research in Security Prices (CRSP), CRSP Survivor-Bias-Free US Mutual Fund Database, and Morningstar/Ibbotson Associate database. There are several findings. First, on average, ETF sponsors have the timing ability to open an ETF, suggesting that an investor can buy an ETF once it is opened and hold it until one-to-three years in order to earn a positive abnormal return. Second, the prior one-year return performance of an ETF sponsor is positively related to the likelihood of an ETF opening, a result consistent with the “brand name” hypothesis that when an existing ETF of a sponsor performs well, the sponsor is more likely to start a new ETF in order to capitalize its brand name.
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