EXCHANGE-TRADED FUNDS AND THEIR PERFORMANCE DURING THE COVID CRISIS

Abstract

The subject of the paper is to analyze the industry of exchange-traded funds (ETFs), along with their basic characteristics. ETFs have been the most popular novelty in the financial industry in the previous three decades, demonstrating new investment vehicles; with variety of styles, sizes, risk spectrum and holdings’ coverage. Analysis of the industry includes three most representative broad benchmarks and their associated tracking vehicles: SPY, VGK and IEMB; representing US, European and Asian markets, respectively. Analysis result implies superior risk-adjusted performance of Asian markets’ ETF, given its emerging market status and more lucrative flexibility in flight of capital.