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Profitability of sector mutual funds and ETFs during market development
Trojáková, Tamara
This thesis is focused on the comparison of profitability of mutual funds versus ETFs, from five different market sectors. The examined sectors are IT sector, fi-nancial sector, healthcare sector, consumer cyclicals sector and industrial sector. The theoretical part describes the financial market, possibilities of investment and individual investment sectors, with regard to legal environment in Slovakia. The objective of the empirical analysis is to provide a recommendation for investors, after evaluating actively and passively managed funds, from each sector, based on the selected time periods, taking into account various investment horizons and different stages of market development. With reference to the results, the most profitable and at the same time most volatile is the IT sector, the least profitable is financial sector and the lowest risk exposure is provided by the healthcare sector. None of the sectors were able to protect investor during the major bearish mar-ket, with financial sector experiencing the biggest decline during this phase, and IT sector achieving a rapid recovery the following year. On average, with the ex-ception of financial sector, ETFs proved themselves to be better performing in-vestment vehicle regardless of the investment horizon or the specific market phase.
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