Graduation Year

Fall 2013

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

George Batta

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Rights Information

© 2013 James R. McNab


This paper examines the effect capital flows from the introduction of exchange traded funds (ETFs) have on emerging markets. Recent years have seen more capital transfer into emerging markets, and the advantages ETFs offer have helped expedite the process. Increased liquidity and a large diverse collection of holdings help manage the high degree of volatility inherent to these markets. The holdings of the ETFs are tested for returns above their market average for the period surrounding the initial trading date of the fund. Positive effects were seen on individual stocks, but overall the findings suggest no significant mean excess return exists for the period related to the creation of an ETF.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.