
ETFs have improved price efficiency between spot and futures markets, Edhec

The introduction of exchange-traded funds (ETFs) has had a positive effect on the related futures market and/or underlying securities, according to an Edhec-Risk Institute March 2012 publication. Academic literature "suggests that the liquidity of the underlying index market increased after ETFs were introduced", states the report. "Market responses to observed price deviations are also swifter in periods during which there is an ETF on an index than they are in periods before the existence of
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