Investigating factors affecting retail investor awareness of Exchange Traded Funds (ETFs)

Abstract

Research Background: Exchange-traded funds (ETFs) as an investment vehicle are a rapidly expanding industry globally. However, scholars have conducted little research to evaluate the factors influencing retail investor awareness of Exchange Traded Funds (ETFs). Awareness impacts earning, savings, contribution to the economy, proper retirement planning, and mental peace. These have enormous impacts on retail investors. Even so, much ambiguity exists regarding the influence of socio-demographic parameters such as age, gender, education level, investing experience, and subjective financial literacy on investor awareness. Furthermore, there is a shortage of research relevant to influencing factors impacting retail investor knowledge of Exchange Traded Funds. Thus, the present study investigates these key determinants affecting the awareness of Easy Equities investors. Research Purpose and design: The purpose of this study was to investigate if there was a significant association between five characteristics (age, gender, education, investing experience, and subjective financial literacy) with retail investors' awareness of Exchange Traded Funds (ETFs). The research was a quantitative research method with a sample of 154 retail investors. Main findings: The main findings of this research revealed that there is a significant relationship between ETF awareness with age, gender, education, and subjective financial literacy. The relationship between investment experience and ETF awareness, on the other hand, based on the researcher’s finding, was discovered to be insignificant.