So what use is a low TE if that means tracking a benchmark with volatile returns? Table 2 shows the standard deviation (absolute volatility) of the benchmark and, for good measure, the median manager.

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 ...

CalPERS' board is expected to decide in September whether to remove alternative investments from its tracking-error calculation used to control risk. Deciding to do ...

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 ...

Most of us believe that index funds will consistently deliver returns similar to the market, regardless of whether we invest in SIPs or a lump sum. Now imagine this: one person invests Rs 5 lakh as a ...