Asness , Robert J. Trading of ETF shares on an exchange also allows market participants to place market, limit or stop orders, as well as to engage in short selling, which further boosts the ETFs’ market liquidity. Furthermore, other investors, such as pension funds and insurance companies, may implement passive investment strategies in their portfolios managed in-house or through investment vehicles other than mutual funds and ETFs. Alternatively, an actively managed global banking fund has the ability to reduce or terminate exposure to British banks due to heightened levels of risk. The first is how passive investment vehicles influence end investor fund flows.