TY - JOUR

T1 - The massive growth in ETF investments: Do they calm or distort the market?

AU - Pleye, Theresa

AU - Wigge, Katharina

AU - Gutzmer, Franka

AU - Hänsch, Marvin

AU - Zeppenfeld, Jennifer

PY - 2020

Y1 - 2020

N2 - The demand for ETFs is increasing globally every year and it is one of the most popular investment products. What concerns both academics and practitioners is the question of which effect the boom in passive investments will have on the market. In this conceptual paper, we discuss on a conceptual-theoretical level which effects ETFs can have on the capital market and place the importance of active managers and informed investors at the forefront of considerations. We argue for a long-term balance between ETFs and informed investments and against a market-destructive effect of ETFs, taking into account the respective market advantages.

AB - The demand for ETFs is increasing globally every year and it is one of the most popular investment products. What concerns both academics and practitioners is the question of which effect the boom in passive investments will have on the market. In this conceptual paper, we discuss on a conceptual-theoretical level which effects ETFs can have on the capital market and place the importance of active managers and informed investors at the forefront of considerations. We argue for a long-term balance between ETFs and informed investments and against a market-destructive effect of ETFs, taking into account the respective market advantages.

KW - Management studies

UR - http://fox.leuphana.de/portal/de/journals/management-studies(ebc50683-78f1-4124-ab41-49b6ead897ec)/publications.html

UR - http://managementstudies.org/index.php/files/issue/view/8

M3 - Journal articles

VL - 10

SP - 95

EP - 100

JO - Management Studies

JF - Management Studies

SN - 2699-1187

IS - 4

ER -