Factors Influencing Rate of Return of Equity Funds and Exchange Traded Funds
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Abstract
This research article aimed (1) to study the factor influencing equity funds and exchange-traded funds (2) to evaluate the management efficiency of equity funds and exchange-traded funds, and (3) to compare management efficiency between equity funds and exchange-traded funds. Samples included 91 equity funds and 10 exchange-traded funds. This research employed secondary data. Data collecting was conducted during February 2013 - December 2017. Used statistics were descriptive statistics, Pearson’s Correlation, and Multiple regression. Additionally, management efficiency tools were the Sharpe ratio, Treynor ratio, and Jensen model.
Findings are as follows: that systematic risk impacted on rate of return of equity funds and exchange-traded funds at the .01 significance level. Regarding the evaluation of management efficiency of mutual funds and comparison study by Sharpe ratio found that exchange-traded funds provided more management efficiency than those equity funds. However, the Treynor ratio and Jensen model reflected that the management efficiency of equity funds is higher than those of exchange-traded funds. From the comparative study of management efficiency, regarding systematic risk, investors should invest in equity funds due to higher returns.
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Academic articles, research articles, and book reviews in the Ph.D. in Social Sciences Journal are author’s opinions, and not the publisher’s, and is not the responsibility of the Ph.D. in Social Sciences Journal Philosophy Association, Ramkhamhaeng University. (In the case that research is done on human, the researcher has to be trained in Ethics for Doing Research on Human Training and has to produce the evidence of the training).
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