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 generate alpha. While index funds mimic ...

When it comes to trading exchange traded funds, costs matter. Looking beyond explicit costs, such as commission fees and the expense ratio, people should be aware of the implicit costs as well. For ...

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.

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 ...

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 ...

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 ...

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 ...

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 specific stock or bond index, minus fees.

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 ...

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 ...

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.

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 ...