Since the ETF tracks the index the performance of the two will not always be the same, additionally, the ETF has management fees that
create drag on performance.
Traditional fixed diversification
creates a drag on performance from poorer performing assets.
As a result, the cash held within the structure does not participate in the index returns,
creating a drag on the performance of the ETF.
Not exact matches
This
creates a
drag on portfolio
performance.
2017 COPO Camaro show car The 2017 COPO Camaro program extends the production legacy that was re-started in 2012 and based
on the special - order high -
performance Camaro models
created in 1969 to win
on the
drag strip.
TFR is not a fan of active mutual funds, because of the sizable
drag of management fees
on overall
performance, their high portfolio turnover, and their requirement to hold significant cash to cover drawdowns
creating another
performance drag.