Uncovering the profile of passive exchange-traded fund retail investors
We profile retail investors in passive exchange-traded funds (P-ETFs) using both trading records and survey-based data on a large pool of individuals over nearly a decade. There is strong evidence that retail investors who trade P-ETFs have a distinct profile. Both the probability and the magnitude...
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| Autori principali: | , , |
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| Natura: | Article ou chapitre numérique |
| Lingua: | Français |
| Pubblicazione: |
2025
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| Accesso online: | Accès Université d'Orléans et IFPM Accès Université d'Orléans et IFPM |
| Riassunto: | We profile retail investors in passive exchange-traded funds (P-ETFs) using both trading records and survey-based data on a large pool of individuals over nearly a decade. There is strong evidence that retail investors who trade P-ETFs have a distinct profile. Both the probability and the magnitude of P-ETF investing are driven by higher education and longer trading experience. P-ETF investors self-report higher financial literacy, a lower return objective, lower risk tolerance, and a longer investment horizon. These investors are less overconfident, and their stock holdings show less home bias. Furthermore, the more active P-ETF users hold more concentrated stock portfolios and display lower stock portfolio turnover, pointing to a substitution effect between stocks and P-ETFs. |
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