Essays on exchange traded funds and retail investors
(2022)
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Doctoral_thesis-Public_defense-Younes_Elhichou_Elmaya.pdf
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- Authors
- Supervisors
- Petitjean, Mikael
- Abstract
- The evolution of online investing has been astonishing over the last two decades. More than ever, retail investors have their fate in their hands. They enjoy easy access to an extremely large variety of financial products which can sometimes be highly complicated and risky. To separate the wheat from the chaff, retail investors are left with limited resources in terms of skills, time, and wealth, and some of them opt for a passive investment strategy based on low-cost financial instruments, such as exchange-traded funds (ETFs). This doctoral dissertation consists of three essays about passive ETFs and retail investors using both trading records and survey-based data. The first essay shows that retail investors who trade passive ETFs are more sophisticated than those who do not. The second essay shows that passive ETF retail investors show different trading behaviors than individual stock investors. They have better understanding of diversification, have a larger portfolio size, lower turnover, hold their assets for longer periods of time and are less willing to trade lottery-like stocks. The third essay shows that heavy passive ETFs investors trade more passively. The portfolio total and systematic risks are lower for passive ETF investors, while risk-adjusted performance is negative but still higher than investors who trade individual stocks only.
- Affiliations
Citations
El Hichou El Maya, Y. (2022). Essays on exchange traded funds and retail investors. https://hdl.handle.net/2078.5/105305