Is That an Elephant in the Room?: The Story (or Nonstory) of ETF Underperformance
Since ETFs were first launched in 1993, they have been compared to traditional index funds. This is not surprising because, in many cases, ETFs and index funds are far easier to compare than, for example, two actively managed mutual funds. Indeed, when an ETF and a mutual fund track the same index, they should ostensibly have the same performance. Early research on the relative performance of ETFs and mutual funds has tended to indicate ETF underperformance, but it has done so without analyzing why these differences exist. Are the performance differentials driven by structural differences between the two fund structures, or was it simply a question of differences in management style, which do not depend on fund structure and could entail more risk. We attempt to address these issues and to update the performance numbers with a comprehensive look at the data across nine major indexes.
With the use of data and concrete examples, such as ::: a mini-case study, and a focus on the top 20 global players, this ::: thesis aims at tackling Capex issues in the telecom industry by ::: covering: – Uses, levels, inefficiencies in Capex management, ::: notably via insider perspective, and their impacts on capital ::: allocation; – Financing of Capex via debt and the recent ::: development of asset monetization; – Specific trends (NSA, VNOs) ::: and M&A in the telecom industry and their impacts on Capex, via ::: the case study of the French SFR-Numericable ::: transaction.