Exchange-Traded Funds and the New Dynamics of Investing

"Exchange-Traded Funds and the New Dynamics of Investing is an essential reference and a thought-provoking commentary for professional investors in all asset classes. Readers will be able to incorporate what they learn from reading the book into immediate practice, either through modeling and backtesting or through actual active investing using passive instruments." -- Financial Analysts Journal "Ananth Madhavan delivers a clear, accessible, and authoritative exposition of modern investment theory and the role of exchange-traded funds. His treatment integrates the perspectives of investors, investment managers, ETF producers, ETF arbitrageurs and regulators in a unified framework. The analysis draws on well-founded principles of financial economics, but also the real world experience and insights of a seasoned practitioner. Investment professionals, academics, and regulators will find here a thorough reference and guide to the active use of passive strategies and the exchange-traded fund universe." -- Joel Hasbrouck, Kenneth G. Langone Professor of Business Administration and Professor of Finance, Stern School of Business, New York University "ETFs are the fastest growing segment of the mutual fund industry. Madhavan's comprehensive and accessible book delivers a structured framework for understanding the ETF market, with a perfect balance of academic rigor and practical value. This book is an essential guide to one of the most important investment vehicles in today's markets, and will be a valuable resource to academics, individual investors, and the most sophisticated institutional investors." -- Donald B. Keim, John B. Neff Professor of Finance, and Director, Rodney L. White Center for Financial Research, The Wharton School, University of Pennsylvania