RT Journal Article
SR Electronic
T1 ETFs—An Alternative to Futures and a Companion to Options
JF ETFs and Indexing
FD Institutional Investor Journals
SP 155
OP 161
VO 2001
IS 1
A1 Murali Ramaswami
A1 Alex Budny
YR 2001
UL http://guides.pm-research.com/content/2001/1/155.abstract
AB Since 1992, exchange-traded funds (ETFs) have emerged to become significant elements in the landscape of investment products. Led by the popularity of the Qs (NASDAQ 100 Trust ETF), the current list of 108 U.S. listed ETFs trade on average over $4 billion daily. More than half of this dollar volume is from the Qs alone. Until July 31, 2001, the only exchange to trade all but one of the U.S. ETFs was the American Stock Exchange. However, the New York Stock Exchange has since begun to trade the major ETFs, which vindicates their status. As investors realize additional applications for ETFs and as products continue to proliferate, we expect even more trading in ETFs. Here we briefly review the current uses of ETFs and discuss the relationship between derivatives and ETFs.