The article shows that country-specific exchange-traded funds (ETFs) enhance global asset allocation strategies.
Professor of Finance, EDHEC Business School
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.
|Type :||Working paper|
|Date :||le 15/05/2006|
|Pôle de recherche||Finance|