, we look at exchange-traded funds (ETFs) and how they differ fromindex funds in performance and tracking error. Using … daily data and a more comprehensivesample than past research, we find abnormal returns associated with the ETFs are higher … ETFs and domestic ETFs are better than ETFs thattrack international indexes. In our most significant finding, we find that …

, we look at exchange-traded funds (ETFs) and how they differ from index funds in performance and tracking error. Using … daily data and a more comprehensive sample than past research, we find abnormal returns associated with the ETFs are higher … ETFs and domestic ETFs are better than ETFs that track international indexes. In our most significant finding, we find that …

(ETFs). While early ETFs offered diversification at low cost, later ETFs track niche portfolios and charge high fees …. Strikingly, over their first five years, specialized ETFs lose about 30% in risk-adjusted terms. This underperformance cannot be … appear to cater to investors' extrapolative beliefs by issuing specialized ETFs that track attention-grabbing themes …