Cumming, Douglas J.; Monteiro, Pedro - 2023 - This Draft: January 31, 2023
This paper examines the causes and consequences of hedge fund investments in exchange traded funds (ETFs) using U ….S. data from 1998 to 2018. The data indicate that transient hedge funds and quasi-indexer hedge funds are substantially more … likely to invest in ETFs. Unexpected hedge fund inflows cause a rise in ETF investments, and the economic significance of …