Cubes and the individual investor

Authors

  • Richard J. Curcio College of Business Administration, Kent State University
  • Joanna M. Lipka College of Business Administration, Kent State University
  • John H. Thornton, Jr. College of Business Administration, Kent State University

DOI:

https://doi.org/10.61190/fsr.v13i2.4788

Keywords:

Trading volume, Cubes, Exchange traded funds

Abstract

We investigate issues of importance to individual investors concerning Cubes, the NASDAQ 100 Index Tracking Stock. Individual investors are the major long-term holders of Cubes and they hold and trade proportionately more Cubes than Standard & Poors Depository Receipts. Nevertheless, individuals account for less than 50% of the daily trading volume in Cubes. Individuals investing in Cubes are protected from return dilution resulting from market timing and late: trading devices like those possible with open-end mutual funds. Cubes do demonstrate large but rare, short-lived intraday deviations from net asset values. which appear not to present a significant problem except possibly for high frequency traders.

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Published

2004-06-30

Issue

Vol. 13 No. 2 (2004): FSR Summer 2004

Section

New Original Submission

License

Copyright (c) 2004 Academy of Financial Services

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How to Cite

Cubes and the individual investor. (2004). Financial Services Review, 13(2), 123-138. https://doi.org/10.61190/fsr.v13i2.4788