Can new technology outperform the responsibility
Toljander, Joona (2021-04-25)
25.04.2021
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe202104089730
https://urn.fi/URN:NBN:fi-fe202104089730
Tiivistelmä
This study uses empirical analysis to compare two different types of Exchange-traded funds and examine which has the higher Alpha and the risk-adjusted return. The data is from the Datastream, and the time period is from the beginning of the year 2019 to the end of the year 2020. Besides, this study will introduce the different S.R.I. strategies, blockchain technology, and what unites these two different topics.
Blockchain technology has proliferated, and more companies are using the technology in their primary business to support the business or have made the blockchain technology at their pri-mary business. Socially responsible investing has become a new megatrend of the investing styles and gained many supporters worldwide; the Blockchain is still new and slightly niche com-pared to the S.R.I. This study's main reason was to find whether these two topics could be united and seen at the same side of the Responsibility discussion. Besides, how could be the new tech-nology support the S.R.I. and also the E.S.G. measuring? Blockchain could be in the future be a part of the transparency of the companies and institutions.
This thesis's empirical part will provide directional advice for possible investors considering whether to invest in S.R.I. or Blockchain Exchange Traded Funds. The results will be direction-al because of the small number of Blockchain funds available; the results cannot be considered absolute truth. The time period will be from April 2019 to October 2020, and the comparison will be examined using methods like Sharpe, Jensen Alpha and other factor models. Besides, this study will also be examined the volatility of these two different kinds of funds.
This study will provide results that support the hypothesis that Blockchain ETF's has gained more risk-adjusted returns and has a higher Alpha than the Socially Responsible Investing based funds. As mentioned, the result should be taken more directional than absolute truth because of the short time frame and the lack of several exchange-traded funds, whether investing in cryptocurrencies or investing in companies in their primary business, the block-chain technology.
Blockchain technology has proliferated, and more companies are using the technology in their primary business to support the business or have made the blockchain technology at their pri-mary business. Socially responsible investing has become a new megatrend of the investing styles and gained many supporters worldwide; the Blockchain is still new and slightly niche com-pared to the S.R.I. This study's main reason was to find whether these two topics could be united and seen at the same side of the Responsibility discussion. Besides, how could be the new tech-nology support the S.R.I. and also the E.S.G. measuring? Blockchain could be in the future be a part of the transparency of the companies and institutions.
This thesis's empirical part will provide directional advice for possible investors considering whether to invest in S.R.I. or Blockchain Exchange Traded Funds. The results will be direction-al because of the small number of Blockchain funds available; the results cannot be considered absolute truth. The time period will be from April 2019 to October 2020, and the comparison will be examined using methods like Sharpe, Jensen Alpha and other factor models. Besides, this study will also be examined the volatility of these two different kinds of funds.
This study will provide results that support the hypothesis that Blockchain ETF's has gained more risk-adjusted returns and has a higher Alpha than the Socially Responsible Investing based funds. As mentioned, the result should be taken more directional than absolute truth because of the short time frame and the lack of several exchange-traded funds, whether investing in cryptocurrencies or investing in companies in their primary business, the block-chain technology.