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30 years of exchange traded funds: The boom and the risks of market and regulatory failure
[30 let burzovně obchodovaných fondů: boom a rizika tržního a regulatorního selhání]

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  • Petr Musílek

Abstract

The discussion paper focuses on the prerequisites for the creation, development and consequences of exchange traded funds. The article first analyzes the defining characteristics of the effective behavior of stock markets as an elementary prerequisite for the investment demand for passive portfolio management. Subsequently, attention is paid to the nature of exchange traded funds and their rapid development in recent decades. Individual types of exchange traded funds are also analyzed. In the final part of the paper, some risks of the rapid development of this financial innovation, which significantly changes the focus of investment management, both individual and institutional, are discussed.

Suggested Citation

  • Petr Musílek, 2023. "30 years of exchange traded funds: The boom and the risks of market and regulatory failure [30 let burzovně obchodovaných fondů: boom a rizika tržního a regulatorního selhání]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2023(1), pages 35-48.
    • Handle: RePEc:prg:jnlcfu:v:2023:y:2023:i:1:id:581:p:35-48
    DOI: 10.18267/j.cfuc.581
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    References listed on IDEAS

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    1. Dannhauser, Caitlin D., 2017. "The impact of innovation: Evidence from corporate bond exchange-traded funds (ETFs)," Journal of Financial Economics, Elsevier, vol. 125(3), pages 537-560.
    2. Luboš Pástor & Pietro Veronesi, 2009. "Technological Revolutions and Stock Prices," American Economic Review, American Economic Association, vol. 99(4), pages 1451-1483, September.
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    More about this item

    Keywords

    Efficient Market; Indexed Investing; Passive Investing; Exchange Traded Fund; Efektivní trh; Indexované investování; Pasivní investování; Burzovně obchodovaný fond;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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