Finance Seminar: ETF investments in Institutions
The best side of academia is the access to stimulation. This afternoon, Hamed Salehi presented his and Juha Joenväärä's paper "ETF Holding and Stock Selection Skill Among Institutional Investors" in the finance seminar series. The foreign terminology made the following a little bit challenging to an outsider like me but it is refreshing to hear what other research. The biggest take away I got was that institutions started to use ETF's in 1999 where as the first ETF's date to 1993. Since then, the share of ETF's has grown if they are used in the portfolio. The biggest institutions use typically ETF's and ETF users usually have more analysts than non-user's have. The non-users tend to have more constrained portfolios. However, bigger institutions usually have more analysts.
My lack of background in the area probably affected on the upper explained take away. Yet, ETF's interest me quite a lot and I have been sharing for a suitable one. The cost efficiency is the biggest advantage.
Besides the seminar, the day has been quite normal. Coding and revising some editing tricks. Instead of explaining the change in value added, I tried explaining change in intangible assets. Here, there is a strong evidence of spillovers of intangibles. But how to interpret these? The intangibles are calculated from investments on intangibles. This could be just correlation: the intangibles of trade partner move to the same direction of the own investments? Could the correlation of GDP explain the growth? Correlation or a cause, that's a tough question.
The situation demands for coffee.
|The mug of Vaasa University|