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ETFs Growth Prospects: A Review of Global Trading in Year 2013

Omondi, Ojwang George, ETFs Growth Prospects: A Review of Global Trading in Year 2013 (April 17, 2014). Available at SSRN:

“Investment is a multidisciplinary function that should not be left to investment consultants and private bankers without the investor taking a leading part in its course. The capital markets are for the better part channels through which wealth is created and destroyed depending on the investment policy and strategy adopted in its management. Retail investors have a duty to be able to decipher noise from information in their trading undertakings. Institutional investors on the other hand are better placed to purchase material information and involve fund managers in their investment process. ETFs as financial innovations developed to counter the shortcomings of mutual funds have been attracting massive pools of asset base from investors through their intra-day trading flexibility, tax advantages, low TER (Total expense ratio) and diversification purposes. The year 2013 witnessed growth from US markets, European markets and Asia Pacific region. The rest of the world including Middle East and Africa performed dismally. ETFs continue to grow both in asset base and cash flow prospects despite some of them focusing on niche markets.”

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