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On the Economic Consequences of Index|Linked Investing


On the Economic Consequences of Index-Linked Investing

major financial innovations, the increasing popularity of index-linked invest- ing may well be reducing its ability to deliver its advertised benefits while at.

On the Economic Consequences of Index-Linked Investing | NBER

Index-linked investing is distorting stock prices and risk-return tradeoffs, which in turn may be distorting corporate investment and financing decisions.

On the Economic Consequences of Index-Linked Investing

I review research which suggests that index-linked investing is distorting stock prices and risk-return tradeoffs, which in turn may be distorting corporate ...

On the Economic Consequences of Index-Linked Investing

Trillions of dollars are invested through index funds, exchange-traded funds, and other index derivatives. The benefits of index-linked ...

Economic Impact of Index Investing | The Review of Financial Studies

Following financialization, firms that use index commodities make worse production decisions, earn 40% lower profits, and have 6% higher costs.

Index Funds Surge In Popularity But Pose Risks For The Market

As of right now, with index funds capturing 53% of the market, you don't see any negative impact on the capital markets. “Prices would co-move ...

Chapter 3: On the Economic Consequences of Index-Linked Investing

Index-driven mispricings affect expected returns and volatility. They also degrade investors' ability to measure fund manager skill. Investing in Index Funds. A ...

On the Economic Consequences of Index-Linked Investing

5 The evidence on the consequences of index investing has been slim (Wurgler, 2011) . Our main contribution is to show that the use of indexes by institutional ...

How Index Funds Are Hurting Investors and the Market - Investopedia

It hurts these companies' incentive to compete with each other, leads to higher prices and slower economic growth. That's the theory,” he ...

On index investing - ScienceDirect.com

Our results show that higher index investing is associated with higher turnover, higher short interest, and higher index correlations. Nonetheless, using the ...

The equilibrium consequences of indexing∗

The standard investment recommendation that financial economists offer to retail investors it to purchase a low-fee index mutual fund or exchange-traded fund ( ...

Are index funds getting too powerful? | On Point - WBUR

... index funds are shaping corporations and the American economy ... impact on the operation of that company? It's not through direct ...

5 Reasons to Avoid Index Funds - Investopedia

Index investing is a popular investment strategy, but there are also reasons why some investors might want to avoid index funds. · While indexes may be low cost ...

The Economic Impact of Index Investing - Oxford Academic

flows into and out of commodity-linked notes lead to significant changes in commodity futures and spot prices.8. More generally, a growing ...

What Does The Fed's Latest Move Mean For Investors? | J.P. Morgan

The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks ...

On the Economic Consequences of Index-Linked Investing

Faculty Digital Archive : NYU Libraries · Communities & Collections · Stern School of Business · Finance Working Papers · On the Economic ...

The Dominance of Passive Investing and Its Effect on Financial ...

“Diversification has been a strategy investors use to diversify away firm-specific risk and reduce portfolio risk, but index funds tend to buy ...

The Consequences of Index Investing on Managerial Incentives

Ringgenberg, 2022, “On Index Investing,” Journal of Financial Economics, 145,. 665-683. ... Davies, S., 2021, “Index-Linked Trading and Stock ...

How Do Changing Interest Rates Affect the Stock Market? - U.S. Bank

“Mostly positive earnings news and favorable economic data have the biggest equity market impact today,” says Rob Haworth, senior investment ...

Asset pricing with index investing - ScienceDirect

Overall, indexing decreases market volatility but has an ambiguous effect on the correlations. Also, index investing decreases an investor's welfare, but ...