Sentences with phrase «term tracking error»

The term tracking error is used to describe the difference between the performance of an investment fund or portfolio and that of its benchmark.

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.

Not exact matches

But if you take a slightly longer term view and consider the fact that XSP has trailed IVV returns in US dollars every year for the past five years, you'll find that XSP's outperformance is significantly eroded by the tracking error even with a significant appreciation in the Canadian dollar.

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

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.

Tracking error: ETFs possibly underperform the index or benchmark they are tracking over the longer term because of the impact of fees and other costs The tracking error varies between different ETFs depending on the approach chosen to replicate thTracking error: ETFs possibly underperform the index or benchmark they are tracking over the longer term because of the impact of fees and other costs The tracking error varies between different ETFs depending on the approach chosen to replicate thtracking over the longer term because of the impact of fees and other costs The tracking error varies between different ETFs depending on the approach chosen to replicate thtracking error varies between different ETFs depending on the approach chosen to replicate the index.

If you are a long term investor just set your portfolio and don't lose sleep over the potential for wild currency exchange rate fluctuations on the one hand and tracking errors on the other.

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

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.

The site also includes 11 model portfolios — encompassing expected and historical returns and risk, tracking error, CAPE ratios, inflation expectations, yield curves, GDP growth rates, commodity term structures, and more.

The verdict on currency - hedging then (based on an admittedly short history of just 6 years) is clear: Long - term investors are highly unlikely to profit from hedging their currency exposure because currency effects have to overcome significantly large tracking errors simply to break even.

There can be large tracking errors when holding leveraged ETFs on a longer term basis.

The Fund invests by sampling the Index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics which may cause the fund to experience tracking errors relative to performance of the Index.

If this 2.0 % tracking error is an implicit cost of insurance for hedging away currency fluctuations between the U.S. dollar and the Canadian dollar, the additional drag may make it highly unlikely that a currency - hedged U.S. ETF will outperform an unhedged U.S. ETF over the long term.

The strategy is a trade - off — increasing tracking error, but lowering costs — and over the long term it should even out.

The hedged index has some tracking error with the S&P 500 (in USD terms).

Therefore investors can expect HXS to display significant tracking errors to the S&P 500 Index (in US$ terms) due to low correlation between equities and currencies.

-- the term of investment (in years)-- annual returns — Currency - hedged fund tracking error — Currency conversion cost — size of currency appreciation / depreciation over the investment term

Human errors, poor judgment calls and random acts of aggression all make the track a much more dynamic and dangerous place to be, which in turn makes the racing feel truly on the cusp of next gen. With a couple of hundred cars and just 14 circuits, each with their own variations, Forza 5 is a notable cutback in terms of content.

Moreover, we have observing systems in place that nominally can measure the major storage and flux terms, but due to errors and uncertainty it remains a challenge to track anomalies with confidence.