ETF trading strategies to enhance client wealth maximization

Authors

  • James A. DiLellio Graziadio School of Business and Management, Pepperdine University
  • Darrol J. Stanley Graziadio School of Business and Management, Pepperdine University

DOI:

https://doi.org/10.61190/fsr.v20i2.4698

Keywords:

Exchange traded funds, Outperformance, Market efficiency, Active management

Abstract

This study examines the performance of pragmatic ETF-only investment strategies published either in an investment newsletter, blog, or are otherwise available through investment advisories. Our objective is to determine if ETF-only strategies can outperform either the S&P 500 or more repre­sentative benchmarks on an absolute and/or risk-adjusted basis. We surveyed a number of strategies and analyzed a subset that supported a five-year price history, including both trading commissions and bid-ask spread costs. Our findings show that while a majority of strategies beat the S&P 500 and a representative benchmark, weak statistical outperformance persisted in a smaller fraction of the sample.

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Published

2011-06-30

How to Cite

DiLellio, J. A., & Stanley, D. J. (2011). ETF trading strategies to enhance client wealth maximization. Financial Services Review, 20(2), 145–163. https://doi.org/10.61190/fsr.v20i2.4698

Issue

Vol. 20 No. 2 (2011): FSR Summer 2011

Section

New Original Submission

License

Copyright (c) 2011 Academy of Financial Services

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