RT Journal Article
SR Electronic
T1 ETF Mythbuster: <em>Tracking Down the Truth</em>
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 95
OP 106
DO 10.3905/jii.2010.1.1.095
VO 1
IS 1
A1 Victor Lin
A1 Phil Mackintosh
YR 2010
UL https://pm-research.com/content/1/1/95.abstract
AB The rising popularity of ETFs as short-term trading tools as well as longer-term investment vehicles has brought increased attention to how they perform. Tracking error is a one of the most common measures of how well index funds (and ETFs) perform. But tracking error is often misused by the media and investors when referring to ETF performance. In this article, the authors clarify some of the most common misconceptions regarding ETF performance. They also show that relative performance is, in general, far better than tracking error calculations might imply.TOPICS: Exchange-traded funds and applications, passive strategies, portfolio theory