Goldman Sachs pointed out that ETF investors tend to concentrate their trades in relatively few products, with the 20 most heavily traded ETFs of a specific industry accounting for 85% of total average daily value traded among U.S.-listed sector ETFs with $100 million in assets or more.
Technology sector stocks were the least correlated with movements in their related ETFs.
Additionally, the report notes that while ETFs only hold a tenth of assets under management compared to mutual funds, the ETF product is attracting greater use from institutional investors.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.