Performance Comparison of European Exchange Traded Funds (ETF) and Index Mutual Funds

Seminar Paper , 2013 , 13 Pages , Grade: 1

Business economics - Banking, Stock Exchanges, Insurance, Accounting

Nowadays exchange traded funds (ETFs) are getting more and more popular. Many investors believe that their risk-performance profile is better than ordinary index mutual funds. This seminar paper focuses on the real returns of both asset classes. It is based on a scientific paper written by Sharifzadeh et. al.(2012). The authors compared ETFs and index mutual funds which had quite the same composition. Additionally, they tested the risk-return profile of both, using the sharpe ratio. Interestingly, they found out that ETFs could not outperform index mutual funds and vice versa.

Table of content

II. List of abbreviation

1. Introduction

2. Differences between ETFs and Index Mutual Funds

3. Methodology

4. Result
4.1. Results for Hypothesis
4.2. Results for Hypothesis

5. Conclusion

III. References

• College: University of Innsbruck
• Course: Risikomanagement
• Grade: 1
• Author: BSc Oliver Baumgartner (Author)
• Publication Year: 2013
• Pages: 13
• Catalog Number: V211829
• ISBN (eBook): 9783656404194
• ISBN (Book): 9783656406136
• Language: English
• Tags: performance, european, exchange, traded, funds, ETF, Investmentfond, Index Mutual Fund, fund, comparison, Vergleich