RT Journal Article
SR Electronic
T1 The Way Ahead for Exchange-Traded Funds: <em>Results from a European Survey</em>
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 50
OP 54
DO 10.3905/JAI.2009.12.1.050
VO 12
IS 1
A1 Noël Amenc
A1 Felix Goltz
YR 2009
UL https://pm-research.com/content/12/1/50.abstract
AB This article describes the role of exchange-traded funds (ETFs) in the implementation of exposure to various asset classes, as shown by a recent survey of European professional investors and asset managers. It provides insights into the current use of liquid index trackers and into the prospects, as revealed by survey responses, for growth in the use of these instruments. The survey is based on a questionnaire that was addressed to industry participants in Europe in early 2008. The study generated responses from 111 Europe-based asset managers and institutional investors. It is worth noting that the survey garnered responses from the major industry players, as is evidenced by the 12.3% of institutions that manage in excess of €100 billion. Selected findings of the survey are highlighted in this article. The findings show that liquidity is perceived as a key advantage of ETFs over indexing vehicles like traditional index funds and total returns swaps. Likewise, the tracking quality of ETFs is judged to be highly satisfactory compared to other indexing vehicles. The findings also shed some light on the methods investors use to evaluate liquidity and tracking error.TOPICS: Exchange-traded funds and applications, developed, derivatives