Exchange-Traded Funds: The Unknown Investment Opportunity

Authors

Thomas K. Leisher, Wittenberg UniversityFollow

Abstract

Actively managed mutual funds are some of the most invested in investment vehicles in the modern era. However, it is a great misunderstanding of their performance relative to their passively managed exchange-traded funds. Actively managed mutual funds fail to outperform their respective benchmarks due to a variety of reasons including market efficiency, timing, and tax consequences. These findings hold true in both the long-term and short-term for equities and fixed income funds. A self-conducted survey was also conducted in order to find the knowledge and opinions of college students on ETFs and mutual funds.

Recommended Citation

Leisher, Thomas K. (2018) "Exchange-Traded Funds: The Unknown Investment Opportunity," Undergraduate Economic Review: Vol. 15: Iss. 1, Article 15.
Available at: https://digitalcommons.iwu.edu/uer/vol15/iss1/15