Incomplete Investor Search: Low-expense Index Funds and Fund Flows in a Fund Family

2021 ◽  
Author(s):  
Mengqiao Du
Keyword(s):  
Fund Flows ◽  
Index Funds

Index Fund Entry and Financial Product Market Competition

2020 ◽  
Author(s):  
Yang Sun
Keyword(s):  
Mutual Fund ◽  
Low Cost ◽  
Market Competition ◽  
Active Management ◽  
Fund Flows ◽  
Cost Index ◽  
Index Funds ◽  
The Mean ◽  
Staggered Entry ◽  
Managed Funds

The active money management industry is characterized by both strong competitive pressure from passive investment vehicles and high fees. This paper investigates how the introduction of low-cost index funds affects fund company strategies. The retail mutual fund market is segmented, where unsophisticated investors rely on financial advisers and sophisticated ones invest directly. Exploiting the staggered entry of low-cost Vanguard index funds as competitive shocks, I show that, in response to competition, incumbents sold to self-directed investors reduce their fees by 5% of the mean; however, funds sold with broker recommendations increase their fees by 6% of the mean. Index fund entry also slows the growth of actively managed funds. The responsiveness of broker-sold fund flows to distribution fees increases, suggesting a shift in composition toward less elastic consumers. Further, incumbents increase the degree of active management. The results illustrate why mutual fund fees slowly decline in the aggregate despite competition from lower-cost alternatives. This paper was accepted by Gustavo Manso, finance.

Uses of Futures and Index Funds

1998 ◽  
Vol 1998 (6) ◽  
pp. 111-116 ◽  
Author(s):  
James R.C. Woodlock
Keyword(s):  
Index Funds

What’s in a Name? Mutual Fund Flows When Managers Have Foreign-Sounding Names

CFA Digest ◽  
2016 ◽  
Vol 46 (3) ◽  
Author(s):  
Neeti Goyal
Keyword(s):  
Mutual Fund ◽  
Fund Flows ◽  
Mutual Fund Flows

Index Funds and Stock Market Growth

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 65-66
Author(s):  
Keith H. Black
Keyword(s):  
Stock Market ◽  
Index Funds ◽  
Market Growth

The Effects of Advertising on Mutual Fund Flows: Results from a New Database

CFA Digest ◽  
2012 ◽  
Vol 42 (1) ◽  
pp. 98-99
Author(s):  
Sadaf Aliuddin
Keyword(s):  
Mutual Fund ◽  
Fund Flows ◽  
Mutual Fund Flows

Out of Sight, Out of Mind: The Effects of Expenses on Mutual Fund Flows

CFA Digest ◽  
2006 ◽  
Vol 36 (3) ◽  
pp. 64-65
Author(s):  
Frederick J. Cornelius
Keyword(s):  
Mutual Fund ◽  
Fund Flows ◽  
Mutual Fund Flows

Can Inventory Index Funds Improve Active Equity Performance?

1978 ◽  
Vol 34 (3) ◽  
pp. 34-36 ◽  
Author(s):  
Wayne H. Wagner ◽  
Carol A. Zipkin
Keyword(s):  
Index Funds

Market Risk and Equity Fund Flows

2018 ◽  
Vol 31 (2) ◽  
pp. 187-220
Author(s):  
Yeonjeong Ha ◽  
Keyword(s):  
Market Risk ◽  
Fund Flows ◽  
Equity Fund

Disclosure and Search Costs: The Case of Retail S&P 500 Index Funds

2009 ◽  
Author(s):  
Jeffrey L. Callen ◽  
Xinghua Liang
Keyword(s):  
Search Costs ◽  
Index Funds
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