Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311114 
Year of Publication: 
2024
Series/Report no.: 
ECB Working Paper No. 2963
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
This paper examines the use of ETFs by open-ended investment funds in the euro area to manage liquidity. We find that during the COVID-19 market turmoil, investment funds were the most run-prone investor type in the market for ETFs. We also show that open-ended funds that faced larger outflows in March 2020 scaled down their ETF holdings by a larger amount. These results are consistent with open-ended funds passing on their outflows to the ETF shares they held. Since open-ended investment funds are the largest group of ETF investors in the euro area, their trading can materially impact primary ETF flows during times of stress.
Subjects: 
Exchange-traded funds
cross-fund holdings
liquidity management
COVID-19 pandemic
JEL: 
G01
G11
G23
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6773-0
Document Type: 
Working Paper

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