Country-Specific ETFs: An Efficient Approach to Global Asset Allocation

The article shows that country-specific exchange-traded funds (ETFs) enhance global asset allocation strategies.

Author(s) :

Joelle Miffre

Professor of Finance, EDHEC Business School

Presentation :

Because ETFs can be sold short even on a downtick, global strategies that diversify risk across country-specific ETFs generate efficiency gains that cannot be achieved by simply investing in a global index open- or closed-end fund. Besides, the benefits of international diversification can be achieved with country-specific ETFs at low cost, with low tracking error and in a tax-efficient way. For all these reasons, country-specific ETFs may be considered serious competitors to traditional country open and closed-end funds.
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Country-Specific ETFs: An Efficient Approach to Global Asset Allocation...
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Type : Working paper
Date : le 15/05/2006
Extra information : Pour plus d'informations, nous vous prions de vous adresser à Séverine Anjubault, Direction de la recherche de l'EDHEC [ severine.anjubault@edhec.edu ] Les opinions exprimées sont celles des auteurs et n'engagent pas la responsabilité de l'EDHEC.
Research Cluster : Finance

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