PORTFOLIO DIVERSIFICATION WITH ETFs
PORTFOLIO DIVERSIFICATION WITH ETFs
Author(s): Mirel Flavius PopaSubject(s): Economy
Published by: Editura Mustang
Keywords: ETF; portfolio diversification; portfolio management; investment funds; capital market; personal finance
Summary/Abstract: The research paper intends to highlight the characteristics and demonstrate the benefits ofan increasingly popular investment product, the Exchange-Traded Fund (ETF). Although ithas been around for at least two decades, it began to attract most of the inflows after theGlobal Financial Crisis of 2007-2008, the industry’s assets under management growing bymore than 300% since then.The case study outlines the benefits of investing in ETFs by comparing its return and risksto a stock-only portfolio. Using weekly closing prices for fifteen ETFs and stocks, themarket and minimum-variance portfolio and also the Value at Risk model have beencomputed for a two-year period (2015-2017).The final chapter provides an outlook of the Exchange-Traded Fund industry, addressingthe main opportunities and challenges that will arise in the coming years.
Journal: Revista de Studii Financiare
- Issue Year: 2/2017
- Issue No: 3
- Page Range: 174-188
- Page Count: 15
- Language: English, Romanian