Sentences with phrase «lower tracking errors»

Generally, the framework is to choose an ETF with a low expense ratio, low trading costs, low tracking error, and a tax - advantaged structure.

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

QEP Global Core is an enhanced index strategy that seeks to outperform the MSCI World Index (net dividends reinvested) ** by 1.0 % per annum (gross of fees) with a low tracking error.

Cap - weighted index funds are not perfect, but they do have several things going for them: they are cheap and usually have very low tracking errors.

The iShares products are probably the most prudently managed ETFs in the country, with consistently low tracking errors, even when the funds are small.

The measure of success, then, is low tracking error.

Low tracking error.

It's also worth recognizing the Streetwise Balanced Fund's relatively low tracking error.

Let's start with the positive results: the three core equity funds tracking the RAFI fundamental indexes had very low tracking errors.

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

In addition to the DJSI, S&P Dow Jones Indices and RobecoSAM have developed the Dow Jones Sustainability Diversified Indices, which have a broader universe and a lower tracking error to the benchmarks.

Luciano Siracusano, chief investment strategist at WisdomTree explains, «WisdomTree's existing suite of dividend - and earnings - weighted ETFs have typically tapped into the smart beta factors of value, quality and size and, in many instances, have outperformed their market capitalization - weighted benchmarks, while exhibiting relatively low tracking error against those benchmarks.

Finally, a lower tracking error just means the ETF is more efficient at its job of mimicking an index.

We look for ETFs that are low cost, liquid, and have a low tracking error to their underlying index.

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).

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

Be absolute return purist and clients may leave and blow themselves up elsewhere when the cycle ends... or sprinkle in some low tracking error strategies and participate enough to keep clients from bolting at the wrong time.

Since most well - run ETFs have low tracking errors, this is an imperfect but reasonable proxy, and I decided to do the same for the new edition of my own book.

They have the lowest MERs of any retail funds in the country, a long record of low tracking error, and the added benefit of being available online without a discount brokerage account.

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

Lower relative risk would also be a reasonable expectation, experienced by lower tracking error and shorter periods of underperformance relative to the market.

«HXS is an award - winning U.S. Equity ETF, with low tracking error, high tax - efficiency and now, a very competitive management fee,» said Mr. Hawkins.

Not exact matches

Its pitch was simple: If you have a bit more than walking - around money, instead of buying ETFs, you can just buy single stocks, and take advantage of your single - stock losses more efficiently, lowering your tax bill in exchange for some small amount of tracking error.

Incorrectly tracking students due to significant errors caused by low testing precision and low testing accuracy.

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

The iShares ETFs have exceeded expectations here: XIC, XIU, XMD and XCS all have tracking errors lower than their annual fees.

Fixed income: The two largest bond funds, XBB and XSB, also had tracking errors lower than their MERs, another excellent result.

We've made sure our All - Stars have a good record of keeping tracking errors low.

If you are cloning, it is probably likely that your investors have low tolerance for tracking error; perhaps that's why they are hiring cloners in the first place?

«Is it essentially impossible to generate genuine alpha in closet - indexing, low - tracking error strategies that will never get an institutional manager fired.»

But it remains to be seen whether a Venture ETF can ever have the economies of scale it will need to keep its costs low and its tracking error small.

The strategy isa trade - offâ $» increasing tracking error, but lowering costsâ $» and over the long term it should even out.

While the swap structure has many potential benefits — including lower cost, smaller tracking error, and tax efficiency — it also introduces counterparty risk.

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

That's a tracking error of 73 basis points, which is much lower than you would expect from a fund that has an MER of 1.07 %, and it closes some of the gap between the Streetwise and TD e-Series funds.

A couple of weeks ago, I reported on the tracking errors of iShares ETFs in 2011, which were mostly very low.

If you do decide to switch to Vanguard ETFs upon launch, you are making a bit of a leap of faith that Vanguard will be able to keep tracking errors low.

TD e-Series Funds remain a great choice for low - cost, diversified portfolios, especially when modest amounts are invested on a regular basis but the funds that track foreign stock markets can have large annual tracking errors (both positive and negative).

When building a portfolio, multiple levels of risk control are employed with the objective of achieving alpha with the lowest possible tracking error.

Look to own those with the lowest underlying tracking error, which is the standard deviation of an ETF's returns from those of the benchmark.

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.

If a manager is realizing low average returns and has a large tracking error, it is a sign that there is something significantly wrong with that investment and that the investor should most likely find a replacement.

XIN shows an annualized tracking error of 1.30 %, which is lower than the tracking error shown by XSP but still wide enough to suggest that currency hedging is highly likely to be unprofitable.

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 tiLow 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 tilow 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 tilow 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.»

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.

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.

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.

As mentioned above, if some of the securities that are included in an index have very low daily trading volumes and therefore very low liquidity, they might not be included in the ETF, resulting in a tracking error.

The key takeaway is that tracking error increases proportionally as low vol allocation is increased.