IDEAS home Printed from https://ideas.repec.org/a/ris/iosalg/0061.html
   My bibliography  Save this article

The Russian ETF puzzle and its possible reasons

Author

Listed:
  • Tarassov, Evgeni B.

    (Department of Finance, Head of Wealth Management Institute, National Research University Higher School of Economics)

Abstract

This paper documents the Russian exchange-traded funds (ETF) puzzle. Since 2014-2015, most Russian fund-of-funds have been investing only in one preselected Western ETF. During that period, these funds have raised more money than any other fund category in Russia. However, if an investor buys shares in an ETF via a mutual fund (MF) rather than doing it directly, she overpays up to 36% of the invested capital over a 10-year horizon. Additionally, the paper provides a brief overview of possible reasons for this anomalous, suboptimal index investing behavior, and formulates hypotheses for further research.

Suggested Citation

  • Tarassov, Evgeni B., 2017. "The Russian ETF puzzle and its possible reasons," Algorithmic Finance, IOS Press, vol. 6(3-4), pages 93-102.
    • Handle: RePEc:ris:iosalg:0061
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    ETF; index fund rationality paradox; non-optimal index investing; index mutual funds;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:iosalg:0061. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Saskia van Wijngaarden (email available below). General contact details of provider: http://www.iospress.nl/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.