An array of new investment products that arrived on the market in recent years have highlighted a perennial risk for advisors. Dispersion risk — also known as ...

While holding the entire index portfolio should theoretically minimize tracking error, the transaction costs from buying and selling all of the securities can ultimately detract from tracking ...

Index tracking and portfolio optimization are pivotal techniques in modern financial management, aiming to replicate the performance of a benchmark index while minimising discrepancies and risk. This ...

Passive investing strategies aim to minimize cost differentials, crucially measured in basis points, by closely tracking benchmark indexes. Tracking difference and ...

Equity factor strategies have experienced performance challenges relative to cap-weighted indexes since the COVID-19-induced market crash of 2020. In cap-weighted indexes, companies with higher market ...

The wrong assumptions are being made about fund managers and their approach to risk by those using tracking error, according to Russell Investments’ portfolio manager, Scott Bennett. Speaking at the ...

When it comes to integrating ESG factors into investment strategies, market participants may be interested in deviations from the benchmark. Improving the ESG profile ...

So while TE has a purpose in understanding a portfolio’s positions away from benchmark, it does very little to explain the absolute volatility in returns. TE statistics have to be examined in the ...

Whether you are a new or seasoned investor, chances are you want a way to track your portfolio at a glance from your mobile device. Fortunately, dozens of apps available today allow you to do exactly ...