The Emergence of ETFs in Asia-Pacific

verfasst von: Adam Marszk, Ewa Lechman, Dr. Yasuyuki Kato

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book is dedicated to examining Exchange-Traded Funds (ETFs) market in the Asia-Pacific region between 2004 and 2017. It offers a broad examination of the attributes and development of the ETF markets. The book presents a new approach to ETF markets modeling that uses innovation diffusion model. In addition, it explores the empirical links between ETFs and Information and Communication Technologies (ICTs). The book also compares ETFs and competing investment options. This book should appeal to both academics and practitioners as it includes detailed descriptions of the ETF markets and prepared projections regarding their future development. As the Asia-Pacific region plays a significant role in the global economy, this book should be useful for international readers beyond this area.

The Emergence of ETFs in Asia-Pacific begins with an overview of the Asia-Pacific economies, focusing on their importance for the global economy and their features. Next, the book introduces an analytical framework. It explains major features of ETFs (such as their creation, distribution, and trading) and key categories, which facilitates profound understanding of the book merit even for readers with little knowledge about ETFs. The following chapter explores the role of ICTs in economy and society identifying channels of their impact on financial markets. It discusses how ICTs foster dynamic spread of financial innovations (including ETFs) across financial markets. Next, the book examines the ETF market's development in different countries in the Asia-Pacific region, by analyzing their level of development in terms of turnover. In this part it also provides brief characteristics of all markets, including their structures and categories of ETFs in various countries. Consecutive part of the book is dedicated to reports on the process of ICTs growing penetration across Asia-Pacific countries, showing the changes observed during recent years. It then continues the empirical analysis of the ETF markets in the Asia-Pacific region by attempting to trace the links between the development of ETF markets and ICT penetration during the period 2004-2017. As complementary material, a methodological annex is included showing major analytical techniques used throughout the research.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

This Introduction presents general aims and scopes of this book. It contextualizes this research, showing its targets and setting the time and geographic coverage. It also briefly presents contents of consecutive chapters.

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Chapter 2. Exchange-Traded Funds: Concepts and Contexts

Abstract

This chapter is designed to provide theoretical framework for the empirical research regarding development of ETFs markets. The special emphasis is to put on the innovative funds in the Asia-Pacific region. It discusses the basic mechanisms of ETFs, showing the role of various participants of the ETFs markets and distinguishing between primary and secondary market. It compares ETFs to their main alternative in the financial system—mutual funds—showing relative advantages and disadvantages of both categories. Additionally, key events of the ETFs’ history are described. After the introductory discussion, it presents the main categories of ETFs, classified according to the key criteria, including the replication method, distinction between passive and active funds, approaches to the rate of return in relation to their benchmarks, and types of underlying assets. The third part of the chapter is devoted to the discussion of the definition of the ETFs market development, comparisons between ETFs and stock index derivatives (with the focus on the stock index arbitrage complex), presentation of applications of ETFs, and providing some insights into the topic of the determinants of the ETFs market development. Finally, it discusses the main characteristics of the Asia-Pacific ETFs markets—it presents the summary of their history, main market development statistics (in terms of assets, number, and other attributes), their structure, and position of ETFs in the Asia-Pacific investment industries (compared to mutual funds).

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Chapter 3. Information and Communication Technologies for Financial Innovations

Abstract

This chapter focuses on the impact of the new technologies on the development of the financial system, in particular with regard to the financial markets. Due to the prevalence of the equity ETFs, the discussion concentrates on the impact of ICT on the stock markets; the effects regarding other parts of the financial system are mentioned briefly. It also presents some of the contemporary issues linked with the ICT adoption in the financial system, such as the broadly understood fintech. The final part of this chapter is devoted to the linkages between the adoption of ICT and development of ETFs markets (i.e., diffusion of ETFs). It starts with the presentation of general remarks concerning factors affecting the diffusion of ETFs, then it discusses the impact of ICT on the demand and supply side of the ETFs market, and, finally, it shows some contemporary examples of the ICT adoption in the investment industry, above all in the selected segments of the fintech sector. Throughout the chapter both theoretical concepts and results of the empirical research are presented.

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Chapter 4. Exchange-Traded Funds Market Development in Asia-Pacific Region

Abstract

This chapter comprises results of the empirical analysis of ETFs markets in the Asia-Pacific region. It provides an overview of the current state of development of ETFs markets in 12 countries. First, it presents and compares their level of development and provides short characteristics, including their structures and features of the key categories of ETFs used in various countries. Moreover, it describes the main trends of the Asia-Pacific regional ETFs market in terms of turnover (and number of listed funds), supplemented by the analysis of the inequalities concerning diffusion of ETFs in the region. Second, this chapter demonstrates the results regarding ETFs diffusion, i.e., ETFs market development that is considered in two perspectives: as the value of turnover of ETFs on the local exchanges (absolute approach) or as the share of ETFs in the total turnover of index instruments (relative approach). The analysis is conducted using the models of diffusion of innovation. The final part of the chapter is devoted to discussion of projections of the diffusion of ETFs in the Asia-Pacific region. Calculations are based on monthly data for the years 2004–2017.

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Chapter 5. ICT Deployment in the Asia-Pacific Countries: Eliminating Information Asymmetries

Abstract

This chapter extensively discusses the process of ICT diffusion across 12 Asia-Pacific economies, between 1990 and 2017. It provides a detailed analysis of country-specific ICT diffusion curves with respect to four core ICT indicators: mobile-cellular telephony, fixed-broadband and active mobile-broadband networks, and Internet users. It shows the unique features of this process in each of examined economies; it demonstrates its dynamic and specific patterns. It also briefly discusses the emerging technological substitution process, which demonstrates gradual switching from “old” technology to “new” technology. All data used in this chapter are exclusively extracted from World Telecommunications/ICT Indicators database 2017 and 2018.

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Chapter 6. New Technologies for Exchange-Traded Funds

Abstract

This chapter studies the role of information and communication technologies in the diffusion of exchange-traded funds in the countries of the Asia-Pacific region. It investigates two processes with the potentially profound impact on the local economies: development of the ETFs markets and deployment of ICT. The chapter begins with the brief discussion of the basic evidence on the turnover of ETFs in the annual perspective. The next part of the chapter presents the evidence on the relationship between ETFs and ICT on the regional level. Analysis starts with the discussion of the graphical evidence, and, subsequently, estimates of the panel models are examined. It focuses on the relationships between the value of the turnover of ETFs in USD millions (indicator of the absolute development of the ETFs market) and three indicators of ICT adoption: fixed-broadband subscriptions per 100 inhabitants, active mobile-broadband subscriptions per 100 inhabitants, and Internet users per 100 inhabitants. The final part of the chapter covers the country-level linkages between ETFs and ICT, starting with the brief overview of the graphical evidence, followed by the estimates of the country-specific models. In case of each country analysis includes the attributes of the diffusion of ETFs and any other issues that may be identified as being significant for the analyzed relationships (in particular the local fintech industries). The results are presented on the country-by-country basis, and most attention is devoted to the largest ETFs markets in the region. Time period of the analysis in the chapter is 2004–2016.

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Chapter 7. Conclusions

Abstract

This chapter is aimed at summarizing major objectives of this book and briefly discussing topics it has covered. It also targets to present the reader main findings and conclusions from the empirical parts of the study, referring to examination of the process of ETFs development, ICT diffusion, and identification of the links between these two.

Adam Marszk, Ewa Lechman, Yasuyuki Kato

Backmatter

Titel: The Emergence of ETFs in Asia-Pacific
verfasst von: Adam Marszk
Ewa Lechman
Dr. Yasuyuki Kato
Verlag: Springer International Publishing
Electronic ISBN: 978-3-030-12752-7
Print ISBN: 978-3-030-12751-0
DOI: https://doi.org/10.1007/978-3-030-12752-7