What's an AI name worth? The impact of AI ETFs on their underlying stocks

Chih-Chiang Wu and Wei-Peng Chen

Finance Research Letters, 2022, vol. 46, issue PB

Abstract: This study examines the difference in abnormal returns of constituent stocks on the inception dates of ETFs by grouping U.S. AI ETFs into those with AI names and those without AI names. The results show that the constituent stocks of AI ETFs with AI names have approximately 0.4% more cumulative abnormal returns (CARs) than those of AI ETFs without AI names over the event period, confirming that ETF names also generate name premiums for constituent stocks. This study complements Cooper et al. (2001) by suggesting that derivative names also generate name premiums on underlying assets.

Keywords: Exchange-traded funds (ETF); Artificial intelligence (AI); Event Study; Components (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004542

DOI: 10.1016/j.frl.2021.102474

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