This paper examines competition between ETFs that hold nearly identical portfolios of securities. We provide evidence that incumbent-fund liquidity is negatively affected when a new ETF is added to an asset class. The degradation in liquidity is even more severe whenever both funds follow the...

Despite widely publicized fee reductions, we find that average ETF expense ratios have remained relatively steady during the last 15 years. Even though thousands of new funds have entered the market, the arrival of most ETF sponsors into a narrowly defined area does not generally lead to lower...

We examine clustering of transaction prices in a sample that contains high-frequency trading firms’ transactions. We separate our sample into four categories: transactions with a high-frequency trading firm on both sides of the transaction, on only one side of the transaction (either liquidity...