We provide the first in-depth examination of exchange-traded funds (ETFs) within actively managed mutual fund (AMMF) portfolios to better understand why AMMFs make substantial investments in passive ETFs. We examine the association between holding ETF positions and AMMF performance, as well as...

The exchange-traded fund (ETF) market has dramatically increased in size and influence. With this growth, there has been an increase in the number of liquidations. We find that the decision to liquidate an ETF is primarily based on ETF characteristics; however, we observe additional...