Open Access Journal Article

The Performance of the Australian Equity ETFs

by Gerasimos G. Rompotis a,*
a
Department of Economics, National and Kapodistrian University of Athens, Athens, Greece
*
Author to whom correspondence should be addressed.
FEL  2024 3(4):39; https://doi.org/10.58567/fel03040004
Received: 2 May 2024 / Accepted: 4 June 2024 / Published Online: 30 December 2024
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Abstract

The performance of the equity Australian Exchange Traded Funds (ETFs) over the five-year period 2019-2023 is examined in this study. The empirical results show that, on average, the return of the examined ETFs has been positive over the study period. In addition, the ETFs has beaten, in raw return terms, the S&P/ASX 200 Index, which is a proxy for the entire stock market in Australia, in three out of five years during the study period. However, these ETFs have not achieved any statistically significant alpha against the market benchmark. Moreover, the results of a cross-sectional regression model show that performance is negatively related to the age of ETFs but positively to their size. Finally, when it comes to persistence, the empirical findings indicate that in most of the cases performance reverts from one year to another.

Keywords: ETFs; Performance; Risk-Adjusted Return; Australian Stock Market;
Copyright: © 2024 by Rompotis. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Rompotis, G. G. The Performance of the Australian Equity ETFs. Financial Economics Letters, 2024, 3, 39. https://doi.org/10.58567/fel03040004
AMA Style
Rompotis G G. The Performance of the Australian Equity ETFs. Financial Economics Letters; 2024, 3(4):39. https://doi.org/10.58567/fel03040004
Chicago/Turabian Style
Rompotis, Gerasimos G. 2024. "The Performance of the Australian Equity ETFs" Financial Economics Letters 3, no.4:39. https://doi.org/10.58567/fel03040004
APA style
Rompotis, G. G. (2024). The Performance of the Australian Equity ETFs. Financial Economics Letters, 3(4), 39. https://doi.org/10.58567/fel03040004

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