Purpose – The purpose of this paper is to provide a brief review of three strands of the literature on exchange‐traded funds. Design/methodology/approach – The paper starts with a review of the history of the growth of exchange‐traded funds and their characteristics. The paper then...

Purpose – The purpose of this paper is to provide a brief review of three strands of the literature on exchange-traded funds. Design/methodology/approach – The paper starts with a review of the history of the growth of exchange-traded funds and their characteristics. The paper then examines...

Purpose – Leveraged and inverse ETFs (hereafter leveraged ETFs) have received much press coverage of late due to issues with their performance. Managers and the media have focused investors' attention on the impact of compounding, when the funds are held for more than one day. The aim of this...

Purpose – The purpose of this study is to extend the work of DeFusco, Ivanov and Karels by examining pricing deviation of DIA, SPY and QQQQ on intradaily basis. Design/methodology/approach – The DIA is designed to be one hundredth of the DJIA, the SPY is designed to be one tenth of the S&P...

Purpose – The purpose of this paper is to investigate the extent to which introduction of ETFs reduces short‐sale constraints in their constituent stocks. Design/methodology/approach – First, the introduction of ETFs increases short interest for stocks that they hold. Second, the increase...

Purpose – The aim of this paper is to examine the informational efficiency of prices of all exchange traded funds (ETFs) that are actively traded on the NYSE Arca, based on methodology developed by Chordia et al. Design/methodology/approach – The authors estimate the speed of convergence to...