Work

Spillover dynamics in sustainable food ETF markets: Financialization and sustainable investment trends

Year: 2025

Type: article

Abstract: This study evaluates the spillover dynamics and interconnectedness among sustainable food exchange-traded funds (ETFs) from January 2021 to November 2024, with a focus on financialization and sustainable investment trends during periods of geopolitical tension. This study uses the connectedness approach and found significantly higher interconnectedness during the Israel-Palestine conflict than the Russia-Ukraine conflict. Sustainable food (SFRIZF1-ETF, SFRIZF2-ETF, and SFFOGB2-ETF) consistently emerge as the dominant risk spillover transmitters, while sustainable food (SFFOOD1-ETF, SFFOGB1-ETF, SFFOOD2-ETF) markets are risk spillover receivers in the Israel-Palestine conflict. Conversely, sustainable food (SFRIZF1-ETF, SFFOGB2-ETF) markets function as net risk spillover transmitters, whereas sustainable food (SFESSNR-ETF and SFFOOD2-ETF) markets act as risk receivers in the Russia-Ukraine conflict, indicating their resilience to external shocks and utility for diversification. The results provide actionable insights for investors, speculators, and policymakers, emphasizing the financialization strategies based on sustainable food ETF market risk profiles and optimizing returns while mitigating geopolitical conflict risks.

Source: Finance Research Open

DOI: 10.1016/j.finr.2025.100021

Authors: Waheed Ullah Shah, Ijaz Younis, Ibtissem Missaoui, Atta Ullah

Institutions: Shandong Normal University, Guangzhou University, University of Sousse

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Zero hunger, Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,000