Jonathan Zeh

Background

About Jonathan Zeh

I am an Economics major with a minor in Applied Probability and Statistics. My studies gave me the opportunity to build strong empirical skills with the view of applying them to finance. Currently, I am interning at Solactive in Equity Index Development. Bachelor Thesis Abstract (Shortend): Exchange-Traded Funds (ETFs) rely on continuous arbitrage activity to keep the ETF share price at the value of the underlying security portfolio. While the arbitrage mechanism enables intraday liquidity in ETFs, making this financial vehicle attractive for short-term investors, it also transmits demand shocks from the ETF to the underlying securities, potentially increasing their volatility. I find that European stocks exhibit moderate levels of ETF ownership. Using a stock-level panel, I find that stocks with high ETF ownership do not show increased volatility compared to stocks with low ETF ownership.