Sentences with phrase «tracking errors over»

To simulate various actively - managed fund tracking errors over thirty years, Professor Sharpe ran a million simulations using Monte Carlo analysis techniques drawing from investment return data since the beginning of the 20th century.

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.

It has positive tracking errors over 1, 3 and 5 years and since inception!

An ETF with fewer assets - under - management (AUM) may encounter less index tracking error over time since their positions in the component stocks will be smaller.

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.

By comparison, the monthly tracking error over the same period between the MSCI Emerging Markets Investable Market Index and the MSCI Emerging Markets Index was just 0.262 %.

By comparison, the monthly tracking error over the same period between the FTSE Canada All Cap Index and the S&P / TSX 60 Index (which includes large - cap stocks only) was 0.505 %.

By comparison, the monthly tracking error over the same period between the MSCI EAFE Investable Market Index and the MSCI EAFE Index was even lower at just 0.192 %.

Not exact matches

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

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.

The tracking error of TDB904 over TDB952 was better but still very high at 1.63 %.

If the large tracking errors exhibited over the past 3 years continues, I'm not sure if the costs of hedging would ever be worth it.

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).

EEM had a positive tracking error of 3.62 % over the one year period to March 31, 2009; 0.66 % over 5 years and 0.73 % since inception.

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.

However, since its inception in November 2006 its tracking error has been over 80 basis points.

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

Over the last 10 years, the mutual fund's tracking error has amounted to a mere 0.09 % annually, and since its inception in 1999, the fund has returned 5.15 %, three basis points more than its benchmark index.

The actual tracking error of TDB902 averages 0.57 % over the 2004 - 09 period, which is fairly close to the expected tracking error of 0.63 %.

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

Over time we seek to minimize tracking error — the amount an index fund's performance deviates from its target index.

They are dumping 3 fund managers that have all beaten the index by wide margins over long periods of time because they have a «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.

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.

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.

I'm thinking (and I want to see more data over time) that if you hold these ETFs for a long time then hopefully the tracking errors might balance out and you will end up with a return that reflects the index return minus the MER like XIC did over the 6 years it's been around.

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.

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.

I estimated in http://howtoinvestonline.blogspot.com/2009/12/historical-effect-of-inflation-and.html how a portfolio including non-hedged US index, EAFE index and emerging markets would have done over 1992 - 2009 and it seems that hedging would have provided little benefit even without taking account of big tracking error performance penalties.

-- 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

While putting this post together, I found this article over at IndexUniverse.com: ETF Tracking Error Explodes in 2009.

The article also mentions that the average tracking error for ETFs was 1.25 % in 2009 — over twice the.52 % average in 2008.

The tracking error is huge, these portfolios require 3 - 5 + horizons, and the names are vomit - inducing, but you have a great shot at outperformance over the long - haul.

The principal scientific objective is to make global SSS measurements over the ice - free oceans with 150 - km spatial resolution, and to achieve a measurement error less than 0.2 (PSS - 78 [practical salinity scale of 1978]-RRB- on a 30 - day time scale, taking into account all sensors and geophysical random errors and biases.Salinity is indeed a key indicator of the strength of the hydrologic cycle because it tracks the differences created by varying evaporation and precipitation, runoff, and ice processes.

If you would like your modeling result to be taken seriously as a guide to future planning (I don't mean to presume to know your motives), then keep track of the squared prediction error, the sum of the squared prediction errors (CUSUM), and the square root of the mean prediction error (RMSE) over the next 20 years.

When modelers show what criteria each of their models are designed to forecast over what timescales, and within what margin of error, AND their models have shown a track record of reasonably accurately matching observed conditions; then I will believe the model that has demonstrated such performance is worthy of consideration for formation of government policy.

Looking back over more than 10 years, fossil free portfolios would have had a tracking error of less than 1 % (Compared with the average tracking error of active managers, 5 %)