文档介绍：毕业论文外文翻译
外文题目:SHORT INTEREST IN EXCHANGE-TRADED FUNDS
出处 SWISS SOCIETY FOR FINANCIAL MARKET RESEARCH
作者:Jeff Madura · Thanh Ngo
原文:
SHORT INTEREST IN EXCHANGE-TRADED FUNDS
Abstract
Short selling exchange-traded funds (ETFs) has e mon means of speculating or hedging in response to pessimistic expectations about a specific market or sector, as the short interest of ETFs is more than 10 times that of individual stocks, on average. We determine that sector-based ETFs have an abnormally large short interest level, whereas international ETFs have an unusually small short interest level. The level of short interest is larger for ETFs that have a higher trading volume and a lower market capitalization, regardless of the type of ETF assessed. The level of short interest is lower for ETFs representing indexes that have tradable derivatives, but higher for international ETFs representing indexes that have tradable derivatives. We also determine that the level of short interest in an ETF serves as an effective signal of bearish sentiment when considering all ETFs, but is not an effective signal when isolating any particular type of ETF.
Keywords :Exchange-traded funds · Short sales · Short selling
I. INTRODUCTION
An ETF is a specialized investment trust that is created to mirror a specificed portfolio of securities. Most ETFs represent portfolios of stocks and can be classified as broad-based, sector-based, or international, depending on the type of index they mimic.
They differ from open-end index mutual funds in that they are traded continuously
on an exchange and can be purchased or sold any time the market is open. These ETFs are created when an authorized participant (such as a specialist) obtains the portfolio of stocks and stores the stocks at a custodial bank. In return, the custodial bank provides shares of ETFs to the authorized participant. This process is referred to as in-kind trading. Once the ETF shares are provided to the authorized participant, t