Sentences with phrase «high tracking error»

Investors are uncomfortable with unconventional strategies that use leverage and derivatives and incur high tracking error.

In reality, fund manager keep on watching cash levels of funds and other corporate announcements of underlying stocks and accordingly decide to reinvest accumulated dividends in such way that it do not cause for high tracking error.

The fund's primary benchmark will be the Bloomberg Barclays U.S. Aggregate Bond Index, but as a high tracking error fund, it will seek to differentiate itself from the index and maximize returns.

First off, high tracking error is not a risk.

Even when the Canadian dollar appreciates strongly, the high tracking error of currency - hedged funds often reduces any potential benefit.

Implementation issues encountered in designing low - volatility investment strategies include unwelcome concentrations in certain regions, countries, and economic sectors; the combination of low liquidity and high turnover, raising implicit trading costs; and high tracking error relative to broad capitalization - weighted market benchmarks.

I don't know why XIN has a high tracking error.

And you're looking for managers who have a «high tracking error», as Inker puts it.

The KL Allocation Fund had a low correlation to benchmark indexes compared to the Morningstar category average and a high tracking error, indicating a high level of active management and conviction.

But a fund with a low MER and a consistently high tracking error is still expensive.

High tracking error volatility indicates a high degree of active management.

The Fund may have higher tracking error and / or greater costs than other international investments.

It explains why ETFs that use strategies other than cap - weighting typically have higher tracking errors.

Physically replicated ETFs typically have a higher tracking error than those that have been synthetically replicated.

Low beta or low volatility strategies have lower absolute risk than the market, but typically come at the cost of higher relative risk and low vol strategies tend to have higher tracking error, which represents the risk that the strategy deviates from the market for extended periods of time.

But, for investors willing to assume higher tracking error relative to traditional market capitalization - weighted benchmarks, a multifactor approach, such as the WisdomTree U.S. Multifactor Fund, has the potential to enhance returns, while providing greater factor diversification and thus, may lower volatility compared to single - factor approaches.»

Low - vol strategies tend to have higher tracking error, which represents the risk that the strategy deviates from the market for extended periods of time.

There is potentially a higher tracking error that can result from traditional index replication — holding the physical securities — which can result in compounded tracking error over time and a difference in the returns of the ETF in comparison to the index it tracks.

It is quite possible for an ETF with a lower fee to post a higher tracking error than a more efficient competitor.

With higher risk and higher tracking error (5 % / year), Dr. Sharpe's simulation indicated that higher cost actively managed funds could have a somewhat greater chance of beating low cost passive management.

To estimate the potential cost to the naïve index tracker, we construct improved index tracking strategies that benefit from the effects seen in Figure 1, albeit with a higher tracking error.

Not exact matches

Keynes outperformance did not come without commensurate risk (that is, if you measure risk as preforming differently to market benchmark): The tracking error was 13.9 %, reflecting high levels of concentration.

One error and you're in the wall, most likely at high speed and possibly blocking the rest of the track too.

The researchers then confirmed that the number of singly paired chromosomes — also called univalents — was higher in older mouse and even human egg cells, indicating that age - related segregation errors could be tracked back to increased numbers of prematurely separated chromosome pairs.

«The demands of cornering, braking, and getting the power down with consistency are all quite high and the track will punish poor handling cars or driver errors.»

The ETFs in which we invest have low tracking errors, low bid / ask spread, and optimal expense ratios to achieve highest efficiency.

The ETF's tracking error was high in both years: — 3.2 % in 2008, and — 1.5 % in 2009.

That can mean either large tracking errors or frequent rebalancing, leading to higher expenses and capital gains taxes.

CWO also hedges the currency exposure of the fund, which is of dubious benefit given the high costs involved in the form of tracking errors.

DM: I personally think that the debatable benefits of currency hedging for long - term investors are vastly outweighed by the high costs in the form of tracking errors.

The tracking error of TDB904 over TDB952 was better but still very high at 1.63 %.

In fact, EEM has a significant tracking error as you can see in the table below (negative tracking error means ETF returns were higher than the index):

Keep costs affordable; Deliver transparent, high - conviction, high - tracking error portfolios (active), and build systems that we believe can systematically exploit behavioral bias (alpha).

In my opinion, any index fund that keeps revenue from securities lending should first ensure its tracking error is no higher than its management fee.

If these ETFs had large tracking errors (for the record, they did not), their absolute returns would still have been very high, but they would have been losers for not delivering on their mandate.

It has a MER of 0.48 % but its tracking error can be expected to be higher due to the drag from withholding taxes on dividends.

It has closely tracked the underlying index over the last three years with high correlation and low tracking error statistics compared to its peers.

These performance differences are reflected in surprisingly high levels of three - year pairwise tracking errors to each another.

The fee is high, tracking error should be high (although I don't have data on this), it is a leveraged product — so there is a risk that the counter — party will default, and it is too complicated a financial product; to execute it successfully, and without losing a lot of money.

Also, the theoretical tracking error for EFA is expected to be higher than VTI because of withholding taxes on dividends.

This structure typically reduces the cost and tracking error * associated with replicating an index and increases tax efficiency • Tax efficient: HTH is not expected to make taxable distributions • Hedged exposure: Get Canadian currency - hedged ** exposure to the US 7 - 10 year treasury market • Higher compound growth: The reinvestment of index distributions are reflected in HTH's Net Asset Value («NAV»)

Our stylized portfolios that blend six factors (volatility, value, quality, size, momentum, and dividend yield) with four different strategies (marginal risk contribution, minimum variance, Sharpe - ratio weighted, and equity weighted) demonstrated higher risk - adjusted returns than the S&P 500 ®, with a lower tracking error than most single - factor strategies (see Exhibit 1).

It managed this active return with a market tracking error volatility of only 5.9 %, realizing an information ratio of 0.63, much higher than the information ratio of 0.42 realized on the tracking error of the unconditional long - only value strategy.

This also preserves balanced diversification, maintains a higher degree of the percent of assets invested in the market and helps reduce tracking error in the performance of the fund / account.

Ultimately, we care little about growth / value styles and focus on market - beating returns with high active share, low tracking error, and low turnover.

What incoming MoneySense Editor Jonathan Chevreau has to say about changes to OAS, what index investors need to know about tracking errors and why lottery fever is running high in the U.S.

After some initial trial and error, I realized that investing in high - quality businesses that had excellent fundamentals, competitive advantages, and lengthy track records of growing profits was the way to go.

I do think that smart beta, in its many forms, will eventually displace high fee, low tracking error «active» funds.

«I want high conviction, and I need to have high active share, and if I have high conviction and high active share, there's a better probability I'll have a tracking error that I'm looking for.

SEDAR only has reports going back to 2005, and since that time the fund's tracking error has averaged — 1 %, or 17 basis points higher than its MER.