Table 1 Evolution of ETF from mutual funds
Year | Event |
|---|---|
1924 | Evolution of first modern mutual fund ( Massachusetts mutual fund) |
1950 | Modern portfolio theory by Markowitz |
1960 | Efficient market theory by Fama & Sharpe |
1975 | Vanguard Index Fund |
1987 | Crash in US Markets (24% decline in single day) because of automated trading |
1993 | Launch of first successful ETF in USA (SPY) |
1996 | Launch of first gold ETF by Barclays |
2000 | Nasdaq ETF QQQ biggest by asset |
2003 | Launch of first power beta ETF by Powershares |
Post 2003 | Launch of commodities, fixed income, inverse, and leveraged ETFs |