•2 years
What methods do ETF funds use to achieve zero or positive tracking difference (TD), despite indicating total expense ratio (TER) costs in documents at a level of, for example, 0.1%, 0.24%, etc.?
A zero TD value means that the ETF reflects the tracked index 100%. A positive TD value means that the ETF's return rate exceeds the return rate of the index (the fund achieves so-called ALPHA). Where can one find information in a simple way about whether a given ETF applies such methods and how it does it?
A zero TD value means that the ETF reflects the tracked index 100%. A positive TD value means that the ETF's return rate exceeds the return rate of the index (the fund achieves so-called ALPHA). Where can one find information in a simple way about whether a given ETF applies such methods and how it does it?
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