Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271901 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10257
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We conduct field experiments with retail investors recruited from a social trading platform. In our main experiment, we first elicit beliefs about the returns to active investing. We then generate exogenous variation in beliefs by providing treated respondents with information about index funds historically outperforming active funds. Treated respondents are 17.8 percentage points more likely to believe that index funds will outperform active funds in the future. Four months after the experiment, we collect administrative data on portfolio allocations. Treated respondents increase the index fund shares of their portfolios by 4.4 percentage points (37.7%) relative to the control group.
Subjects: 
household finance
retail investors
portfolio allocations
field experiment
JEL: 
G50
D91
D83
Document Type: 
Working Paper
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