Exchange-traded funds (ETFs) have grown substantially in size, diversity, and market significance in recent years, generating considerable interest from investors, academics, regulators and the press. Ananth Madhavan examines in-depth the drivers for the rise of ETFs against the background of interest in passive index investing.

• 1. The Current Landscape


• 2. Structure and Mechanics


• 3. Price Dynamics and Arbitrage


• 4. Valuation


• 5. Performance and Benchmark Tracking


• 6. Liquidity and Transaction Costs


• 7. Uses of ETFs


• 8. Fixed Income


• 9. Commodities


• 10. Foreign Currency


• 11. Investing in Volatility


• 12. Alternatives and Multi-Asset Strategies


• 13. Active Strategies


• 14. Smart Beta and Factor Investing


• 15. Flows


• 16. Leveraged and Inverse Products


• 17. Systemic Risk


• 18. Public Policy Issues


• 19. Future Opportunities

Ananth Madhavan is Managing Director and Global Head of Research for iShares, the world's largest provider of exchange-traded funds. Previous positions include the Global Head of Trading Research and Transitions at Barclays Global Investors, and Head of Research at ITG Inc., an electronic brokerage firm. Dr. Madhavan has also had an extensive career as a professor at the University of Southern California and the Wharton School of the University of Pennsylvania.