Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that. In some instances, a high ...
Tracking error is a number that lets an investor know how closely his or her investment tracks like an index. For example, if you have a portfolio of large cap U.S ...
Investors may bristle at the mere mention of tracking error—but that’s what helps them keep more of their money while maximizing their after-tax returns. Taxes can have a major impact on the long-term ...
Passive investing strategies aim to minimize cost differentials, crucially measured in basis points, by closely tracking benchmark indexes. Tracking difference and ...
Investors will often want to know how closely the returns from a fund or portfolio follow a benchmark index (such as the FTSE 100 or the S&P 500). In some cases, they want to make sure that an index ...
The primary selling point of the new Bitcoin ETFs will be their fee structures, with many offering special promotions to entice investors. The new Bitcoin ETFs are supposed to minimize tracking error, ...
Today’s column addresses three questions. First, to what extent do the portfolios of index funds behave differently from benchmarks that they emulate? That is, before expenses are considered, how ...