Growth and Development of Exchange Traded Funds in India

Abstract

Increased investor money is flowing into capital markets through mutual funds, both globally and in India. Though actively managed funds dominate Assets Under Management (AUM) charts, increasing awareness and trading volumes are channelling investments into passive investing products such as Index mutual funds and Exchange Traded Funds (ETFs). With stock exchanges designing and offering a variety of indices, more Asset Management Companies (AMCs) are seeking permission from market regulators to start offering newer ETF products. Governments, such as in India, are using the ETF route to achieve its divestment targets. ETF volumes of equity and commodities are picking up on trading terminals as India is gearing up for new ETF categories - Debt ETF and Smart Beta ETFs. All these facts point out that Indian financial market is joining the matured markets league. Mere building new financial products might not be sufficient and chasing growth always poses challenges. This paper attempts to understand the concept and dynamics of ETFs, recent regulations, how Governments are using them in their divestment process and to understand if Indian investors are ready for such products. Further, we attempt to give some suggestions that help deepen ETF penetration in India.

Full text

Volume 6, Issue 1 (XI) ISSN 2394 - 7780
January - March 2019
International Journal of
Advance and Innovative Research
(Conference Special)
Indian Academicians and Researchers Association
www.iaraedu.com

INTERNATIONAL MULTI-DISCIPLINARY
CONFERENCE
Theme
Policy Initiatives of Government of India -
Appraisal & Assessment
ORGANIZED BY
VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
MUMBAI
8th & 9th FEBRUARY, 2019
IN ASSOCIATION WITH
Publication Partner
Indian Academicians and Researcher’s Association

International Journal of Advance and Innovative Research
Volume 6, Issue 1 ( XI ) : January – March 2019
CONTENTS
Research Papers
TRACK - 1 : ECONOMIC POLICIES
AN ASSESSMENT OF THE TAX IMPOSED ON LONG TERM CAPITAL GAINS ON EQUITY
ORIENTED MUTUAL FUNDS IN INDIA
Eesha Vinayak Deshpande
1
-
4
PRADHAN MANTRI KAUSHAL VIKAS YOJANA AND TRUCKNG INDUSTRY IN INDIA: A WAY
AHEAD FOR BETTERMENT
Dr. Mahendra Parihar
5
-
9
ECONOMIC PROSPERITY TOWARDS FISHERIES SECTOR IN TELANGANA
P. Srilatha and Dr. V. Rajeshwari
10
–
13
THE EME
RGING ROLE ICT INFRASTRUCTURE IN ECONOMIC DEVELOPMENT: CURRENT
STATUS AND POLICY INITIATIVES OF GOI
Prof. Sandhya Bele and Sarita Bele
14
–
19
APPRAISAL OF MSMES IN INDIA
Avantika Kanade and Bhagyashree Tendolkar
20
–
25
EVALUATION OF GOVERNMENT POLICIES AND INITIATIV
ES ON AGRICULTURAL
SECTOR AND ITS IMPACT ON FARMER’S SUICIDE
Dr. Rinkesh Chheda and Puja Prempal Ahuja
26
–
28
A STUDY ON GOVERNMENT POLICIES FOR SKILL DEVELOPMENT OF MILLENNIALS IN
INDIA
Sagar Balu Gaikwad
29
–
33
SKILL DEVELOPMENT STRATEGY FOR NEW INDIA @ 75
Nimesh Jotaniya and Ruchi Negi
34
–
36
LAND ACQUISITION, CONSENT AND DISPLACEMENT AT SINGUR
Dr. Shefalika Narain
37
–
41
CHANGE IN STOCK PRICE OF BANKS AND CREDIT RATING
Manisha Kumari and V. Mary Jessica
42
–
47
MICROFINANCE: A WAY OUT FOR POOR
Pankaj D. Dandge
48
–
50
COMPROMISE AND A
RRANGEMENT UNDER COMPANIES ACT 2013
Dr. Dattatray Maruti Khune
51
–
53
DO’S AND DON’TS IN THE CAPITAL MARKET & ITS IMPACT ON RETAIL INVESTORS
Prasad J. Dabre
54
–
56

FORENSIC ACCOUNTING: A TOOL FOR DETECTING BANKING FRAUD
Sangeeta Kanojia and Dr. Jyoti Thakur
57
–
62
SAARC
AND REGIONAL TRADE INTEGRATION IN SOUTH ASIA
Sumbul Samreen
63
–
68
AN EXPLORATORY RESEARCH ON ENTREPRENEURSHIP SCHEMES AND DEVELOPING
POLICY FRAMEWORK
Dr. Rinkesh Chheda and Aanchal Jain
69
–
72
A NEW INSIGHT INTO REORGANIZATION IN AVIATION SECTOR WITH SPECIAL
REFERENCE TO GREEN AIRPORTS IN INDIA
Noula Hemalata Premrao
73
–
76
A STUDY ON ONLINE SHOPPING BEHAVIOUR IN RETAIL INDUSTRY IN MUMBAI REGION
Vijay K Vishwakarma and Sajitha S Kumar
77
–
82
AN ANALYSIS OF INNOVATION POLICIES IN INDIAN MSME SECTOR
Dr. Swagatika Nanda
83
–
86
A STUD
Y ON FINANCIAL PLANNING AS A TOOL FOR FUTURE SUCCESS
Priti Dhadge
87
–
89
GROWTH AND DEVELOPMENT OF EXCHANGE TRADED FUNDS (ETFS) IN INDIA
Dr. Aruna Polisetty and Vijaya Kittu Manda
90
–
94
NON
-
PERFORMING ASSETS IN INDIAN URBAN CO
-
OPERATIVE BANKS
–
A STUDY OF
GOVERNMENT INITIATIVES
Sandip Suresh Khandekar and Dr. Rohini Kelkar
95
–
99
REVIEW OF POLICY AND DEVELOPMENTS OF FOREIGN DIRECT EQUITY INVESTMENT
INFLOWS IN INDIAN ECONOMY
Dr. K. Prabhakar Rajkumar and K. Pagavathi
100
–
104
NSE’S RETU
R
N PARAMETER IN INDIA
-
AN EMPIRICAL ANALYSI
S
Dr. K. Prabhakar Rajkumar and D. Subalakshmi
105
-
109
TRACK – 2 : SOCIAL IMPACT POLICIES
CHILD ABUSE
–
BREAK THE SILENCE
Purba Ganguly
110
–
113
A STUDY ON IMPACT OF CONSUMER TRUST BUILDING MEASURES ADOPTED BY
ECOMMERCE COMPANIES– WITH REFERENCE TO CHENNAI CITY
Dr. V. Vinu Chakravarthi, Dr. M. Sivakumar and Dr. G. Veeramani
114
–
117
SIGNIFICANT ROLE OF E
–
GOVERNANCE TOWARDS VARIOUS SECTORS FOR NATION
BUILDING
Prof. Neelima B Nimbhorkar
118
–
121
WOMEN’S RIGHTS
Dr. Devnani Gordhan N
122
–
127

International Journal of Advance and Innovative Research
Volume 6, Issue 1 (XI): January - March, 2019
90
ISSN
2394
-
7780
GROWTH AND DEVELOPMENT OF EXCHANGE TRADED FUNDS (ETFS) IN INDIA
Dr. Aruna Polisetty1 and Vijaya Kittu Manda2
Assistant Professor1 and Research Scholar2, GITAM Institute of Management, GITAM (Deemed to be
University), Visakhapatnam
ABSTRACT
Increased investor money is flowing into capital markets through mutual funds, both globally and in India.
Though actively managed funds dominate Assets Under Management (AUM) charts, increasing awareness and
trading volumes are channelling investments into passive investing products such as Index mutual funds and
Exchange Traded Funds (ETFs). With stock exchanges designing and offering a variety of indices, more Asset
Management Companies (AMCs) are seeking permission from market regulators to start offering newer ETF
products. Governments, such as in India, are using the ETF route to achieve its divestment targets. ETF
volumes of equity and commodities are picking up on trading terminals as India is gearing up for new ETF
categories - Debt ETF and Smart Beta ETFs. All these facts point out that Indian financial market is joining the
matured markets league. Mere building new financial products might not be sufficient and chasing growth
always poses challenges. This paper attempts to understand the concept and dynamics of ETFs, recent
regulations, how Governments are using them in their divestment process and to understand if Indian investors
are ready for such products. Further, we attempt to give some suggestions that help deepen ETF penetration in
India.
JEL Classification: G23, G11, G18, G19
Keywords: mutual funds, ETF, exchange traded fund, index fund, passive investing, smart beta etf
INTRODUCTION
Eugene F. Fama’s Efficient-Market Hypothesis (EMH) says that all information known (to the market) will be
fully priced in the asset and that it is “impossible to beat the market” in a consistent manner on a risk-adjusted
basis (Fama, 1970). This research led to the concept of passive investment and the development of two popular
passive investing products - Index Fund and Exchange Traded Funds (ETFs). An Index fund is a type of mutual
fund which tracks a benchmark index and invests in securities (stocks, commodities etc.) as specified by the
index according to weighted market capitalizations mentioned by the index. Fund managers rebalance the
constituents every time the index is rebalanced (usually once a quarter). An ETF is similar to an index fund but
trades like a stock on the stock exchange and hence has better price discovery and liquidity. However, investors
need a demat account to hold their ETF units.
2018 has taught us two important lessons. Firstly, increased retail investor inflows into mutual fund
strengthened the Indian capital markets thereby reducing dependence on FPI / FIIs inflows in recent times.
Secondly, much of these inflows are into active fund management because fund managers indeed have given
superior alpha returns in the past. However, trends changed in 2018 wherein passive funds outperformed their
active peers - a sign that Indian stock markets are possibly maturing. Transparency (because of blind replication
of the underlining index), low operating cost (including low fund management cost), periodic balancing,
liquidity, no entry-exit loads, negligible Securities Transaction Tax (STT) (negligible in case of ETFs vs up to
10bp in stocks) are key advantages of ETF investing. Lack of sufficient traded volumes and tracking error are
key deterrents for an ETF investor.
OBJECTIVES OF THE STUDY
1. To understand the growth and development of the ETF market with specific reference to India.
2. To understand the preferences and challenges of the Indian ETF investor.
3. To understand emerging trends and development in ETFs.
4. To make suitable suggestions to regulators and other stakeholders for better product development.
SIGNIFICANCE OF THE STUDY
1. Recognizing that the gap between active and passive investing is narrowing down gives an opportunity to
understand a shift in investor strategies.
2. While plain vanilla ETF investing itself is new, global headwinds are towards Smart Beta ETF or ETF 2.0
and Active Factor ETFs. This study helps us understand if the typical Indian investor is ready or not.
3. Regulators and product developers can get insights for better product design and positioning.

International Journal of Advance and Innovative Research
Volume 6, Issue 1 (XI): January - March, 2019
91
ISSN
2394
-
7780
DISCUSSION
ETFs are a wonderful financial product innovation in the last 25 years. The Toronto 35 Index Participation Fund
(TIP35), launched in March 1990 in Canada, is perhaps the first ETF. The first US ETF is the S&P SPDR
(SPY/Spiders) launched in 1993. The US ETF industry recently completed 25 years of their operations and have
come a long way since then - enjoying healthy daily traded volumes, often topping and beating individual
company stocks in volumes (9 ETFs feature in Top 25 volume charts). European stock exchanges started trying
ETFs in 2000. The LDRS DJ STOXX 50 listed on the Deutsche Börse and the LDRS FTSE 100 on the London
Stock Exchange (both in April 2000) are the first European ETFs.
Today, the Global ETF industry is managing $4.9 trillion Assets Under Management (AUMs). US leads ETF
volumes with a 72% market share followed by Europe (16%), Asia Pacific (9%) and Rest of World (3%). There
are 4,535 ETFs globally with 1,569 in US alone. Significant number of new ETFs are launched in 2018 (ICI,
2018). Estimates say that ETF AUMs would touch $7.6 trillion mark by 2020 and even surpass active investing
by 2027 (EY, 2017). Since large issuers and asset managers have their own brokerage, advisory, risk-
management and custody businesses, they would have an edge over other players because of their ability to cut
cost and thereby have lesser tracking error. Studies show that as many as 72% of US ETF schemes of 2018 have
expense ratio of 0.20% or lower. The fee war is fierce in the US and is now spreading to international and fixed-
income funds. Mergers in AMCs will lead to concentration of ETF market into fewer bigger hands.
The first Indian ETF is the Nifty Benchmark Exchange Traded Scheme (Nifty BeES) launched by Benchmark
Mutual Funds (later acquired by Goldman Sachs and subsequently by Reliance MF) in December 2001. It got
listed on the National Stock Exchange (NSE) and is trading since January 2002. The Finance Ministry, by way
of special notification, started allowing Gold ETFs in 2007 so that Indians can invest in “paper” gold via stock
exchange over buying physical gold. The Gold ETF regulation was later entrusted to the market regulator
Securities and Exchange Board of India (SEBI). Debt ETFs and International ETFs too started gaining
popularity but failed in getting sufficient attention.
The Indian ETF industry has grown from 6 ETFs in 2007 to 66 in 2018- at 28% CAGR over a 11-year period.
AUMs grew 10x in the last three years alone - from Rs. 8,900 crores three-years ago to Rs. 89,500 crores as of
October 2018. Despite crossing the Rs. 1 lakh cr AUM mark in 2018, it represents a mere 4% of the overall MF
AUMs. Employee Provident Funds Organization (EPFO) is the largest ETF investor. Increased participation is
coming from High Net worth Individuals (HNI) and retail investors. As much as 93% of Indian ETF
investments are in equity and the rest is with gold and debt.
Very few Indian AMCs offer passive investing products. Out of 44 AMCs, only 15 offer ETFs and only 14 offer
index funds. Further, Reliance Mutual Fund dominates the ETF landscape with 50% ETF folios and 90%
market share in daily ETF volumes. Stock exchanges are creating newer and variety of indices allowing AMCs
to come up newer ETF products. Though investors are getting more choice, this would lead to increased
distribution / scattering of assets / inflows across ETFs further reducing liquidity. While allowing newer ETF is
good, higher priority should be given to increasing volumes by increasing investor participation.
Different type of institutional investors would be using ETF in different ways. Some use it for liquidity
management with selective exposures (pension funds, insurance companies and investment funds), some for
building blocks and international exposure (such as banks), some for portfolio modelling (wealth managers) and
others for leverage or inverse ETFs for long-short strategies (such as hedge funds).
ETFs AS A DISINVESTMENT ROUTE
Government of India is using the easier ETF route to raise money as a part of its disinvestment strategy. CPSE
ETF and Bharat 22 ETF are its two flagship products. CPSE ETF issued by Reliance Nippon AMC with 11
public sector companies is another star ETF through which the Government successfully raised funds. First
launched in March 2014, CPSE ETF New Fund Offer (NFO) was oversubscribed and Rs. 1,363 cr was refunded
back to investors because the issue size was limited to Rs. 3,000 cr. Subsequently, Further Fund Offers (FFO)s
are issued in January 2017, March 2017, November 2018 (FFO3 - biggest disinvestment transaction raising Rs
17,000 cr).
Issued by ICICI Prudential AMC in November 2017, the Bharat 22 ETF is a basket of 22 diversified companies
– 16 central public sector enterprises (CPSEs), three public sector banks and three private sector holdings (ITC,
L&T and Axis Bank) of Specified Undertaking of Unit Trust of India (SUUTI). The Government raised Rs.
22,900 cr from Bharat 22 ETF (Rs. 14,500 cr in November 2017 and Rs 8,400 cr in June 2018). About Rs
10,000 cr would be raised in 2019 as part of the third tranche. A global ETF listing on an overseas stock
exchange, perhaps in FY20, is also planned.

International Journal of Advance and Innovative Research
Volume 6, Issue 1 (XI): January - March, 2019
92
ISSN
2394
-
7780
Discounts at NFO and loyalty bonus for those who held it at least for a year were given to attract retail investor
participation. Sensing the interest, Government is planning to raise Rs 20,000 cr via Debt ETF over the next
one-year. The Department of Investment and Public Asset Management (DIPAM) shortlisted Edelweiss AMC
to manage CPSE Debt ETF. A sizeable portion of the disinvestment of FY20 would be raised through ETFs.
ROLE OF REGULATOR
Indian ETFs and index funds have begun giving better returns over active mutual funds, particularly in the large
cap category. SEBI’s Categorization and Rationalization of Mutual Fund Schemes in October 2017 insists that a
large cap mutual fund scheme should have a minimum of 80% assets in large cap equity and equity-related
companies restricting the fund managers’ playground size. Expense ratio of ETFs is mere 0.1% and 0.2%
compared to 2% to 2.5% of actively manged large cap mf schemes. Clearly, expenses are eating scheme returns
in active funds.
Efficient functioning of any financial product needs efficient regulation. Surveys shown that 15% to 25% of
ETF inflows in the next three years will come from new ETF investors and this class of investors who require a
lot of understanding about the product. Regulator SEBI, in January 2019, issued new portfolio concentration
norms insisting that the index tracking of an ETF shall have a minimum of 10 stocks such that no single stock
constitutes more than 25% of weightage in case of an Equity ETF and 35% weightage in case of a sectoral /
thematic ETF. Further, top 3 holdings cumulative weightage should not exceed 65%. A minimum 80% trading
frequency is necessary for individual index constituents. Average impact cost is to be capped at 1% or less over
the previous six months. Though issuers can make constituent changes anytime, compliance is necessary once a
quarter. Existing ETFs are given three months to ensure compliance.
SMART BETA ETF
Globally, industry headwinds are moving towards Smart Beta ETF or ETF 2.0 wherein the fund seeks to bridge
the gap between active and passive investing strategies. The term “smart beta” was first used by consulting firm
Towers Watson in 1970. The theory behind the smart beta concept was designed by Harry Markowitz in his
Modern Portfolio Theory (MPT). Smart Beta ETFs get increased attention during volatile times, such as during
the 2008 financial crisis when institutional investors started showing interest.
Returns from traditional market weight (capitalization) linked ETFs depend on the performance of the
underlying index. Smart Beta ETFs are “strategically constructed” by following a rule-based, key-person de-
risked approach to enhance returns, improve diversification and reduce risk by combining both passive and
active investing strategies. By passive strategies, the ETF will still follow and track a pre-determined index. By
active strategies, it considers certain investment characteristics called “factors” that explain the risk and return
of a security (such as value, momentum, quality, size, low volatility, high dividend yields etc.) (Bender, Briand,
Melas, & Subramanian, 2013). All these features are boxed into a low-cost ETF product called a Smart Beta
ETF.
Invesco S&P 500 Equal Weight ETF (RSP), launched in 2003, is the first US Smart Beta ETF. US Smart Beta
ETF assets evolved from US $74 billion in 2006 to $504 billion in 2017. Meanwhile, Vanguard is taking the
concept to the next level by launching the first “Active Factor ETF” in 2019.
Back home in India, there are 9 Smart Beta ETFs so far but they are still struggling to catch attention. Having
not seen a complete bull-bear cycle and with no separate guidelines for smart beta ETFs, the segment is still in
baby stage. A section of analysts feels that ETFs in general and Smart Beta ETFs in particular are futuristic and
ahead of time for the Indian investor.
LITERATURE STUDY
Several studies have dealt with different aspects of ETFs - investing strategies (active and passive), suitability
and behavioural aspects of different investors classes (individual, institutional etc.), comparative studies (with
index funds, hedge funds, unit trusts etc.), market development (better stock price discovery, better valuations,
reaction to information flows etc.), reaction to events (such as brexit, eurozone sovereign debt etc.), and
performance aspects (pricing efficiency, tracking error, stock volatility and possibility to liquidity shocks etc.).
Indian investors are not so keen on ETFs because of lack of product variability, liquidity and product
knowledge (Kurian, 2017). Decrease in liquidity leads to increase in bid-ask spreads on the trading terminal.
Higher bid-ask spreads in Indian ETFs is increasing tracking error when compared to index funds (Mahajan,
2017). Price divergences lead to arbitrage opportunities and if arbitrageurs have the ability to quickly exploit the
opportunity using intraday pair trading strategies, they could make decent annual profits (Marshall, Nguyen, &
Visaltanachotic, Sep 2013). While tracking error is responsible for over or underperformance of the ETF in the

International Journal of Advance and Innovative Research
Volume 6, Issue 1 (XI): January - March, 2019
93
ISSN
2394
-
7780
short-run, it comes closer to index returns in the long-run. Sudden large-scale shift from active to passive funds
would possibly have negative effects in areas such as corporate governance, product market competition and
might increase systemic risk (Bessler & Hockmann, 2016). Indians have special importance for Gold and
considerable literature has deal with Gold ETFs. To date, Indian Debt ETFs are not closely studied.
Being not so popular in India, there is a notable paucity of studies in this field. This paper attempts to expand
our body of understanding of the Indian ETF investors and the markets.
RESEARCH METHODOLOGY
This study uses Descriptive research to gather preliminary information, observe the past growth and expansion
of ETFs both globally and in India, record the trends and describe the understanding.
DATA COLLECTION
Primary data from a survey of 120 investor respondents from diversified demographics is collected. Secondary
data from several journals, research papers, official websites of SEBI, stock exchanges and mutual funds is used
to collect information necessary for this study.
FINDINGS
1. Indian investors prefer active (65%) over passive fund management. Most respondents (64%) have less than
a year experience with ETFs. They invest in an ad-hoc basis (80%) instead of investing periodically (say
daily, weekly, monthly etc.)
2. Lack of sufficient trading volumes (46%) is a major deterrent. 91% feel awareness camps are to be organized
to understand ETF better.
3. NSE (51%) is their preferred stock exchange. Reputation of the fund house is very important for them
(45%).
4. 62% feel diversification of underlying assets is very important in the ETF. 66% respondents give importance
to low cost fund management.
5. 60% respondents say ease of transaction is very important for ETFs. 66% respondents say special treatment
(such as by offering tax incentives, zero brokerage & demat charges etc.) will increase ETF penetration.
6. Most respondents (88%) have not heard of Smart Beta ETFs.
RECOMMENDATIONS
1. Investor camps and product advertising dedicated to ETFs should be taken up by market intermediaries to
inculcate the habit of passive investing.
2. ETF, as a product should be made more attractive by way of lower tax treatment, lower brokerage and demat
charges, leverage in the form of margin money for trading etc.
3. Currently, Gold ETFs are buying physical gold corresponding to their assets. This is not economically
productive for the country. They should be allowed to buy Gold Futures instead.
4. ETFs should be allowed to invest in commodity derivatives by rolling over in the futures segment at each
expiring contract. This is practically possible since ETF investments are usually for the long-term.
5. EPFO should be allowed to invest in all forms of ETFs and should not be restricted to Nifty 50, Sensex,
CPSE ETF and Bharat 22 alone. Further, they should consider diversification to other AMCs and not be
limited to SBI MF alone.
6. Indian equites market (and thereby ETFs) are allowed to trade till 3:30 PM while the cut-off time for Mutual
Funds (and thereby to Index funds) is only till 3:00 PM. This time disparity needs to be eliminated.
CONCLUSION
The gap in assets managed by active and passive investing styles is narrowing down with passive funds getting
ready to dominate. Penetration of ETFs is low in India because of lack of product understanding and lengthy
and uncomfortable transaction process – something which needs to be simplified. Indians are still largely
comfortable with traditional savings products over investing and within the investing universe, active fund
management dominates passive. Product awareness is critical to get more investors to ETFs so as to increase
liquidity and trading volumes. Investor camps, simplified products, lower tax treatment and lower expenses
would encourage more investors to try ETFs. Government will continue to use ETFs as part its disinvesting
strategy expanding its product offering with the addition of debt ETF. Indian ETF market is too young and
hardly has seen completed market cycles and hence will take a lot of time to understand Smart Beta ETF and
Active Factor ETFs. ETF regulations will get strengthen over time as experience comes in.

International Journal of Advance and Innovative Research
Volume 6, Issue 1 (XI): January - March, 2019
94
ISSN
2394
-
7780
BIBLIOGRAPHY
1. Aber, J., Li, D., & Can, L. (2009). Price volatility and tracking ability of ETFs. Journal of Asset
Management, 10(4), 210–221.
2. Bender, J., Briand, R., Melas, D., & Subramanian, R. A. (2013). Foundations of Factor Investing. MSCI.
3. Bessler, W., & Hockmann, H. (2016). The Growth and Changing Role of Passive Investments: A Critical
Perspective on Index.
4. Caginalp, G., & DeSantis, M. (2016). Does Price Efficiency Increase with Trading. Chapman University
Digital Commons.
5. Chu, P. (2011). Study on the tracking errors and their determinants: evidence from Hong Kong exchange
traded funds. Applied Financial Economics, 21, 309–315.
6. EY. (2017). Reshaping around the investor - Global ETF Research 2017. Retrieved from
https://www.ey.com/Publication/vwLUAssets/ey-global-etf-survey-2017/$FILE/ey-global-etf-survey-
2017.pdf
7. Fama, E. (1970). Efficient Capital Markets: A Review of Theory and Emperical Work. Journal of Finance,
25(2), 383-417.
8. Gallagher, D., & Segara, R. (2006). The Performance and Trading Characteristics of Exchange-Traded
Funds. Retrieved from http://ssrn.com/abstract=92460/
9. ICI. (2018). 2018 Investment Company Fact Book. Investment Company Institute.
10. Kurian, B. C. (2017, June). Performance of Exchange Traded Funds in India. International Journal of
Scientific Engineering and Research (IJSER), 24-31.
11. Mahajan, P. (2017). A Comparative study of index mutual funds and exchange traded funds in india.
Retrieved from http://hdl.handle.net/10603/206968
12. Marshall, B., Nguyen, N., & Visaltanachotic, N. (Sep 2013). ETF arbitrage: Intraday evidence. Journal of
Banking & Finance, 37(9), 3486-3498.
13. Rompotis, G. (2009). Interfamily competition on index tracking: the case of the vanguard ETFs and index
funds. Journal of Asset Management, 10, 263–278.
14. Smith, V., Suchanek, G., & Williams, A. (1988). Bubbles, crashes and endogenous expectations in
experimental spot asset markets. Econometrica, 56, 1119-1151.
15. Strydom, B., Charteris, A., & McCullough, K. (2015). The relative tracking ability of South African
exchange traded funds and index funds. Investment Analysts Journal, 117-133.