likely to invest in ETFs. Unexpected hedge fund inflows [outflows] cause a rise [reduction] in ETF investments, and the … hedge fund flows are statistically unrelated to ETF investments on average. When ETF investment is accompanied by an … increase in unexpected flow, hedge fund alphas are higher. When ETF investment is accompanied by an increase in expected flow …

(designed to generate alpha) or function (serve as building blocks of active portfolios). The median ETF has an Activeness Index …, leading to competitive fee pressure both within the ETF space and across the investment management industry. We show that …