Sentences with phrase «higher tracking error»

During this period, each ETF is likely to incur higher tracking error than is typical for the ETF.

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

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.»

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

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.

It is important to note that if a single company were to one day become larger than 10 % of the FTSE Canada All Cap Index, we might see significantly higher tracking error between the two indices (as the S&P / TSX Capped Composite would cap the security at 10 %).

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.

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.

The higher the tracking error, the greater the deviation.

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.

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

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.

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

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.

Momentum also typically leads to high tracking error, while the investment factor leads to low tracking error.

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.

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

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.

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.

This means that although there is substantial portfolio alpha available to investors from Indonesia, it helps to have a larger risk budget, or, for benchmarked managers, a higher tracking error in order to take advantage of it.