Index funds are becoming a preferred option for many investors on account of their low-cost structure, and patchy track record of active funds to consistently ...

International index funds and ETFs showed large tracking errors in 2009. In my first post on this topic, I explained how the time differences between North American and overseas markets can make it ...

In the month of June, the market price of iShares MSCI Emerging Markets( EEM) had a volatility that was 27% greater than its index and an annualized tracking error of ...

A passive fund or an exchange traded fund (ETF) attempts to perfectly mimic an index. However, their returns don’t perfectly trail the respective index. Tracking ...

Diversification is an essential element in the investment journey. The underlying idea is to spread the amount invested in different asset classes to reduce the risk while getting maximum returns.

Tracking error can end up being a hidden cost when it comes to exchange traded fund investing. This fact is enough reason to pay attention to the benchmark that a desired ETF is tracking.

Most of us believe that index funds will consistently deliver returns similar to the market, regardless of whether we invest in SIPs or a lump sum. Now imagine this: one person invests Rs 5 lakh as a ...

In a previous post, I pointed out that many international equity ETFs showed large tracking errors in 2009. For example, the iShares MSCI EAFE Index Fund (XIN), which tracks European and Japanese ...

Beware the hidden flaw in some exchange-traded funds that can make mutual funds look good by comparison. Exchange-traded funds ideally provide the return of a ...

Two friends met over coffee and were discussing passive investment products such as index funds and ETFs. Arpit: Hey! Markets have corrected in recent times which gives me an opportunity to buy at ...

Low volatility is a widely follow investment factor and it can be argued that in the nearly five years since the PowerShares S&P 500 Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II ...

In an ideal world, a tracker fund or exchange-traded fund (ETF) would perfectly match the index it is supposed to follow so a FTSE 100 tracker will deliver exactly the same return as the FTSE 100. In ...