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What's an AI name worth? The impact of AI ETFs on their underlying stocks

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  • Wu, Chih-Chiang
  • Chen, Wei-Peng

Abstract

This study examines the difference in abnormal returns of constituent stocks on the inception dates of ETFs by grouping U.S. AI ETFs into those with AI names and those without AI names. The results show that the constituent stocks of AI ETFs with AI names have approximately 0.4% more cumulative abnormal returns (CARs) than those of AI ETFs without AI names over the event period, confirming that ETF names also generate name premiums for constituent stocks. This study complements Cooper et al. (2001) by suggesting that derivative names also generate name premiums on underlying assets.

Suggested Citation

  • Wu, Chih-Chiang & Chen, Wei-Peng, 2022. "What's an AI name worth? The impact of AI ETFs on their underlying stocks," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004542
    DOI: 10.1016/j.frl.2021.102474
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    References listed on IDEAS

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