Related Experiment Video
Updated: Aug 16, 2025
05:37
An R-Based Landscape Validation of a Competing Risk Model
Published on: September 16, 2022
2.2K
Geographical diversification using ETFs: Multinational evidence from COVID-19 pandemic
Hamed Yousefi1, Mohammad Najand1
1Department of Finance, Strome College of Business, Old Dominion University, USA.
International Review of Financial Analysis
|December 20, 2022
Summary
Investors globally adjusted exchange-traded fund (ETF) allocations during the COVID-19 crisis, reacting to infection rates and pandemic control. This study reveals shifts in foreign and domestic investments based on country performance and a flight-to-safety effect.
Area of Science:
- * Financial Economics
- * International Finance
- * Behavioral Finance
Background:
- * The COVID-19 pandemic created unprecedented global economic uncertainty and financial market volatility.
- * Exchange-Traded Funds (ETFs) offer accessible channels for international investment and portfolio diversification.
- * Understanding investor behavior during crises is crucial for financial market stability.
Purpose of the Study:
- * To analyze the relationship between U.S.-listed ETF flows and global regions during the COVID-19 crisis.
- * To investigate how investors adjusted international portfolio allocations in response to pandemic developments.
- * To examine regional differences in investment strategies (e.g., home bias, flight-to-safety) post-pandemic.
Main Methods:
- * Utilized a Markov Switching Vector Autoregression (MSVAR) model to analyze dynamic relationships in ETF flows.
- * Examined dollar flows of ETFs with exposure to the U.S., Europe, Asia, and the rest of the world.
- * Compared foreign and domestic money flows for ETFs listed in the U.S., Europe, and Asia before and after the pandemic.
Main Results:
- * Investors used ETFs to gain foreign market exposure and rapidly adjusted portfolios based on COVID-19 infection rates.
- * Global investors rebalanced portfolios by monitoring countries' pandemic control performance.
- * U.S. and Asian investors reduced foreign investments and favored domestic funds, exhibiting home bias.
- * European investors increased foreign investments, reducing home bias, consistent with a flight-to-safety effect.
Conclusions:
- * Investor behavior during the COVID-19 crisis was significantly influenced by pandemic severity and country-specific control measures.
- * Geographical differences in investment strategies (e.g., home bias vs. international diversification) were evident.
- * The flight-to-safety phenomenon played a role in asset allocation shifts during the economic shock.
Related Concept Videos
02:55The Evidence for Evolution
43.3K
Genetic variations accumulating within populations over generations give rise to biological evolution. Evolutionary changes can result in the formation of novel varieties and entire new species. These changes are responsible for the diverse forms of life inhabiting the planet. The evidence for evolution suggests that all living organisms descended from common ancestors.
43.3K
01:05Single Nucleotide Polymorphisms-SNPs
15.5K
A single nucleotide polymorphism or SNP is a single nucleotide variation at a specific genomic position in a large population. It is the most prevalent type of sequence variation found in the human genome. Point mutations that occur in more than 1% of the population qualify as SNPs. These are present once every 1000 nucleotides on an average in the human genome. Replacement of a purine with another purine (A/G) or a pyrimidine with another pyrimidine (C/T) is known as a transition. In contrast,...
15.5K
01:09Types of Skewness
12.4K
If the frequency distribution of a data set is more inclined towards smaller or larger values, the distribution is said to be skewed. If data values are skewed to the right, then the distribution is called positively skewed. Conversely, if the plot is skewed to the left, the distribution is called negatively skewed.
For instance, in the middle of a pandemic, the geographical distribution of vaccine coverage may be positively skewed towards populations in the global north countries. However,...
For instance, in the middle of a pandemic, the geographical distribution of vaccine coverage may be positively skewed towards populations in the global north countries. However,...
12.4K
02:16Genetics of Speciation
19.4K
Speciation is the evolutionary process resulting in the formation of new, distinct species—groups of reproductively isolated populations.
19.4K
01:25Selected Data About Geographic Locations
54
Geographic Information Systems (GIS) rely on two core types of data: spatial data and attribute data.Spatial DataSpatial data defines the physical location of features within a coordinate system, typically expressed in terms of latitude and longitude. It provides precise positioning for elements like roads, rivers, or buildings.Attribute DataAttribute data complements spatial data by adding descriptive information about these features. For example, a road's spatial data includes its start and...
54
01:18Steps in Outbreak Investigation
167
In the ever-evolving field of public health, statistical analysis serves as a cornerstone for understanding and managing disease outbreaks. By leveraging various statistical tools, health professionals can predict potential outbreaks, analyze ongoing situations, and devise effective responses to mitigate impact. For that to happen, there are a few possible stages of the analysis:
167