This paper examines the causes and consequences of hedge fund investments in exchange traded funds (ETFs) using U.S. data from 1998 to 2018. The data indicate that transient hedge funds and quasi-indexer hedge funds are substantially more likely to invest in ETFs. Unexpected hedge fund inflows...

Pairs trading is a venerable trading strategy. There is agreement that it worked fine in the far past. But it is less clear if it still profitable today. In this working paper the universe of eligible pairs is defined by the holdings of a given ETF. It is shown that the stocks must be from ETFs...

Cover -- Title Page -- Copyright -- Contents -- Preface -- Acknowledgments -- Introduction -- Part 1 Introduction to the ETF Market Place -- Chapter 1 How Did We End Up Here? -- The History of Investment Products -- In the Beginning, There Were Closed-End Funds -- Mutual Funds -- The Creation of...