Profitability of Sector Mutual Funds and ETFs During Market Development and Length of Investment Horizon

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F18%3A43914790" target="_blank" >RIV/62156489:43110/18:43914790 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.5817/FAI2018-2-3" target="_blank" >https://doi.org/10.5817/FAI2018-2-3</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.5817/FAI2018-2-3" target="_blank" >10.5817/FAI2018-2-3</a>

Result language

angličtina

Original language name

Profitability of Sector Mutual Funds and ETFs During Market Development and Length of Investment Horizon

Original language description

This paper focuses on the profitability of investments into IT, finance, healthcare and consumer goods oriented active and passive mutual funds and ETFs and their profit/loss in different market situations (growing, stagnant and decreasing markets).The aim of the paper is to set recommendations for investors as regards which instrument (active or passive mutual fund or ETFs) brings higher return or lower loss over the time and market development and if investors can expect different results based on the sector orientation, which sector is more sensitive to bullish or bearish trends. Our results show that neither ETF nor passive mutual funds were able to beat the market, as the sector index brings better results than these investments in all situations. Within bearish trend, all sector ETFs and passive mutual funds bring the same results as sector index, only active managed mutual funds bring better results. The lowest loss during this period was achieved by active managed mutual funds focusing on healthcare. Bullish and stagnant markets bring quite the same results, but passive funds and ETF are more profitable than active mutual funds in growing markets.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Financial Assets and Investing

ISSN

1804-5081

e-ISSN

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Volume of the periodical

9

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

19

Pages from-to

42-60

UT code for WoS article

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EID of the result in the Scopus database

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