Date of Award


Degree Type

Honors College Thesis

Academic Program

Finance BSBA


Finance, Real Estate, and Business Law

First Advisor

Srinidhi Kanuri, Ph.D.

Advisor Department

Finance, Real Estate, and Business Law


Exchange-Traded Funds (ETFs) are diversified portfolios of assets which trade like stocks and track a benchmark index. This manuscript looks at the diversification and return benefits a U.S. investor would receive by investing in Emerging market (EEM) and Total World (DGT) ETFs over the period of June 2003 to July 2019. We use S&P 500 ETF IVV as a proxy for U.S. market. EEM had the highest absolute return but also the highest risk. However, the U.S. ETF IVV had the greatest risk-adjusted return and the lowest tracking error. International ETFs were also highly correlated with the S&P 500. Overall, results indicate that U.S. investors receive limited diversification benefits through international ETFs.