| Abstract [eng] |
As the global financial crisis is started, investors are trying to look for new investment methods. During the meltdown of most shares, share investments are becoming unattractive, it decreases the liquidity of the exchange itself. As bears are dominating in share markets, more and more investors choose various alternatives of investments. One of them is Exchange Traded Funds, therefore a closer acquaintance with the management, features and advantages of these funds is needed. In order to choose the best combination of ETF funds while forming an investment portfolio, analysis of ETF fund results and created risk is required, as well as determination of how these funds match in one portfolio and what result can be obtained. The object of research – Exchange Traded Funds, as means of risk decreasing. The purpose of this work – to perform evaluation of Exchange Traded Funds and different risks ETF portfolios that were formed according to the created model. To fulfill the purpose the following most important tasks were set: to discuss the features and types of ETF funds and to analyze advantages and disadvantages of the funds arising because of distinctive features of ETF, to distinguish the differences of ETF funds from traditional investment funds, to analyze possible ETF funds portfolio management methods, to analyze the dependence of risks and profitability as well as measuring of ETF funds and portfolio formed of them, to distinguish forming and management strategies of ETF funds investment portfolio and to create a ETF funds forming model according to the distinguished strategies, to analyze the results of ETF funds and to form investment portfolios of different risks according to the created model and to perform the evaluation of them. After analysis of profitability and risks of ETF funds it was determined that according to the results of the analyzed period the best one is the ETF of Latin America, as well as ETF depending on the price of gold. As the financial crisis is deepened, the main share indexes in many geographical regions dropped to great extent, but in the end of March of the year 2009 a period of sudden and constant rising started. This rising was influenced by the fact that economics of countries started to recover because of the economic stimulus package by governments, and investors directed the amount of money increased because of the economic stimulus to the financial instruments of higher risks. After analysis of the investment portfolios it was discovered that only the results of portfolio of aggressive risks were better than those of the comparative index. While analyzing the portfolios it was noticed that general risk of the portfolio depends not only on the instruments in the portfolio, it is also influenced by the investment period of the portfolio, because during the financial crisis the risks and profitability of ETF obligations was distorted to great extent. The market of obligations was highly instable because of the liquidity of obligations in market and share market that was later decreasing, therefore the risks of ETF obligations, even such as substantially non risky 10 – 20 years obligations of USA government, increased to great extent. It was noticed that it is difficult to choose the comparative index when forming the portfolio according to strategies of active distribution, block building or combined strategy of active distribution and block building, or by including the ETF funds of color metals and raw materials into the portfolio and later carrying out evaluation of it. |
