#trackingdifference 검색 결과
Physical versus Synthetic Exchange Traded Funds. Which One Replicates Better? #TrackingError #TrackingDifference More @ mrw.so/3PX0I1
Let’s start with #TrackingDifference. It refers to the difference in performance between an #IndexFund and the #benchmark index the fund is tracking. For example, the table below explains ‘Tracking Difference’ over a 3-year period. 👇
#TrackingDifference would be the time⏰difference between Bolt and Gatlin at the finish line. But #TrackingError shows how close the two athletes were to each other throughout the race.
#TrackingDifference can be positive➕or negative➖. But it is usually negative. Reason: An #IndexFund’s returns are typically less than its benchmark. And Tracking Difference's formula is ‘Fund Return – Benchmark Return’✔️
Which one should you use❓ For short-term tactical investors, #TrackingDifference makes sense. But if you are a long-term investor, #TrackingError is a better parameter to look at.👇 After all, how consistently a fund mirrors its benchmark matters more in an #IndexFund.
To know the #TrackingError of a fund, you need to first calculate the #TrackingDifference. Therefore, factors that impact the Tracking Difference also affect Tracking Error—costs, high cash level, delay in replacing stocks in portfolio when #index constituents change, etc.
#TrackingDifference and #TrackingError—these two parameters help you evaluate #IndexFunds. While many use them interchangeably, there’s a difference between them. A 🧵to understand when to look at each of these.👇
Which one should you use❓ For short-term tactical investors, #TrackingDifference makes sense. But if you are a long-term investor, #TrackingError is a better parameter to look at.👇 After all, how consistently a fund mirrors its benchmark matters more in an #IndexFund.
#TrackingDifference would be the time⏰difference between Bolt and Gatlin at the finish line. But #TrackingError shows how close the two athletes were to each other throughout the race.
To know the #TrackingError of a fund, you need to first calculate the #TrackingDifference. Therefore, factors that impact the Tracking Difference also affect Tracking Error—costs, high cash level, delay in replacing stocks in portfolio when #index constituents change, etc.
#TrackingDifference can be positive➕or negative➖. But it is usually negative. Reason: An #IndexFund’s returns are typically less than its benchmark. And Tracking Difference's formula is ‘Fund Return – Benchmark Return’✔️
Let’s start with #TrackingDifference. It refers to the difference in performance between an #IndexFund and the #benchmark index the fund is tracking. For example, the table below explains ‘Tracking Difference’ over a 3-year period. 👇
#TrackingDifference and #TrackingError—these two parameters help you evaluate #IndexFunds. While many use them interchangeably, there’s a difference between them. A 🧵to understand when to look at each of these.👇
Physical versus Synthetic Exchange Traded Funds. Which One Replicates Better? #TrackingError #TrackingDifference More @ mrw.so/3PX0I1
Physical versus Synthetic Exchange Traded Funds. Which One Replicates Better? #TrackingError #TrackingDifference More @ mrw.so/3PX0I1
Let’s start with #TrackingDifference. It refers to the difference in performance between an #IndexFund and the #benchmark index the fund is tracking. For example, the table below explains ‘Tracking Difference’ over a 3-year period. 👇
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