Abstract
Using the unique dataset on web analytics and exploiting the network structure of the Internet and institutional features of search engine technology, I propose the novel methodology to estimate a product’s online visibility. I then apply the methodology to study the online visibility of exchange-traded funds (ETFs) and analyze the relationship between an ETF’s online visibility and its fund flows. I examine three channels of online visibility: Organic or “free” search, paid search, and website referrals. The results show that ETFs with webpages ranked higher on Google, funds that engage in search engine marketing, and those with webpages referred to by more websites attract higher fund flows. These findings suggest that ETF issuers can reduce investors’ search costs and gain an advantage in attracting fund flows by using online marketing tools.