Sentences with phrase «as tracking error»

Deviation from the benchmark return, known as a tracking error, can occur for several reasons:

This constant scrutiny pushes managers towards the middle because committees want index - beating returns with little deviation from the index (referred to as tracking error).

Any deviation of returns of index fund or ETF from the returns of underlying total return index is known as tracking error.

We also need to look at a few other things that will also affect a fund's performance over time, such as tracking error of the fund's underlying index and trading volume which will be reflected in spread.

With this 360º look, we can model different scenarios in the portfolios and quickly see how they may be impacted from a risk standpoint, such as tracking error and the amount of cash.

These are renewed every month, and if there's a dramatic currency movement between contracts — or if the fund experiences a large cash inflow or outflow — that can show up as tracking error.

Extra volatility does lower compounded returns over the long run, but I doubt that it is as much as the tracking errors that CC reports.

Not exact matches

Tracking errors are reported as a «standard deviation percentage» difference.

(I'm ignoring small tracking errors for now as insignificant.)

The term tracking error is defined as the deviation of the performance of an index fund or exchange - traded fund (ETF) from the performance of the index it tracks.

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.

Another reason absolute momentum has not been as well received may be its tracking error, especially during bull markets.

I also think that the not defending properly accusation from our manager included Xhaka as he did not break his neck to track back and make up for the error.

1 new offensive coach to make us incisive when attacking 1 new defensive coach to stop the ridiculous defensive errors 1 new goalkeeper who is not as error prone 3 new defenders who can actually defend 1 defensive midfield who can track attacking midfield ad plug holes in the back 1 attacking midfield who is consistant 1 wide attacking player who has the ability to beat a player with skill Also can we please have: 1 new CEO who can do decent commercial deals 1 new owner who cares about the club and what us to challenge in the league

And when you do look at those goals — as I have, on my tactical breakdowns, which you can find on the site — you can see why Liverpool have dropped points, and more often than not it's because of some individual error you can not account for, such as Lovren missing the ball, Matip leaving a header, Karius not positioning himself well enough, a midfielder not tracking his man properly, or the team of officials being useless in enforcing the laws of the game.

The teacher will create a running record to keep track of the errors he makes as he reads, using this sheet to calculate his reading level.

Eventually, by firmly contemplating this online dating advice for women you should have the ability to prevent just some of the most popular errors that both women as well as men make when they want to track down an expected partner in the internet dating world.

Instead of using the traditional marking procedure for the assessment — simply marking words read incorrectly and counting words read correctly within a one - minute time frame — the presenting teacher showed how she kept track of the actual errors the student made while reading the connected text, in ways that enabled further analysis of phonological deficits (such as a lack of automatic word reading for all multisyllabic words).

In particular I considered a number of possible proofreading solutions in order to track down as many typos and errors as possible.

Passive funds also aim to keep the tracking error as low as possible.

Rick Ferri wrote in his book «All About Index Funds» that 25bp below the benchmark is regarded as an ideal target.John Bogle also commented in his book «Common Sense on Mutual Funds» that the tracking error must be as close to zero as possible for market returns to be as close to 100 %.

@Lior: Are you using «deviation» as a synonym of tracking error, or is there another metric to which you are referring?

As a result, XCB's tracking error has averaged — 0.82 % over the last five years, despite an MER of 0.42 %.

As with so many investing decisions, tracking error should be considered with a focus on the long - term.

Canadian equities: You should expect a Canadian equity index fund's tracking error to be about as large as its MER — perhaps a few basis points more.

But, as noted in an earlier post, the short performance history showed that these funds exhibited large tracking errors.

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):

So..., if the CS$ might appreciate against the US$ over the next year or two (as occurred not too long ago), then XSP would do better in proportion to IVV (notwithstanding the MER and tracking error issues).

Consistent with this, we primarily view risk as not meeting this objective, rather than measures of volatility (or tracking error).

Using the BMO Equal Weight REITs (ZRE) as an example, you can click the Prices & Performance tab and find a link to a Tracking Error Chart, but the info is displayed only in graphical form.

For example, the U.S. version of the iShares MSCI Emerging Markets Index Fund (NYSE: EEM, recently launched in Canada as ticker XEM) has posted large tracking errors over the past three years, lagging its index by 4.8 % in 2007, besting it by 3.3 % in 2008, and trailing again by more than 9 % so far this year.

As an investor, I know that the tracking error of — 0.50 % is identical to the ETF's fee, which means the fund was managed almost perfectly.

iShares includes a Tracking Error Chart on its website, while websites such as Google Finance and Yahoo! Finance allow you to enter an ETF's ticker and the name of some major indexes to create a line graph comparing the two.

I like to think of tracking error as the most complete measure of an index fund's cost.

NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as «tracking error» in technical terms.

But the portfolios will be more balanced from a liquidity perspective in order to minimize risks from crowded trades as well as reduce tracking error.

If we must regularly assess performance, let's focus on performance relative to expectation distributions, such as a strategy's tracking error of returns relative to its benchmark.

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

The managers then construct a portfolio that uses the type of constituents of a benchmark (such as style, leverage, momentum or market cap) to create a portfolio that will have a tracking error that closely adheres to the benchmark.

Given a sequence of returns for an investment or portfolio and its benchmark, tracking error is calculated as follows:

Tracking error is reported as a standard deviation percentage difference, which reports the difference between the return an investor receives and that of the benchmark he was attempting to imitate.

When currency effects are negative (as it was the case of the CAD / USD and US markets over 2006 to 2011), currency - hedging still did not show a profit due to tracking error.

With positive currency effects (as was the case with CAD / basket and EAFE index over 2006 to 2011), currency - hedged investors are trailing even more because investors did not get the currency boost and paid for their hedging efforts through tracking error.

As you can see below illustrative, there is a tracking error.

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.»

I think as a DIYer it's important to learn as much as possible about the stocks / products that you are investing in which is why I'm interested in the tracking error.

Therefore, in this context the tracking error is immaterial, as is the actual index the ETP decides to track.

Customized total cost analyses that factor in implicit costs (trading costs, tracking error) as well as explicit costs (expense ratios and commissions).

The historical and expected alphas for the smart beta strategies, as well as their respective tracking errors, implied by current US valuation levels are shown in the scatterplots in Figure 3.

The percentages contributed by each of these sources of production change over time, causing further potential «tracking error» when looking at corporate profits as a percentage of GDP over long periods of time.