Index funds are becoming a preferred option for many investors on account of their low-cost structure, and patchy track record of active funds to consistently generate alpha. While index funds mimic ...

Two friends met over coffee and were discussing passive investment products such as index funds and ETFs. Arpit: Hey! Markets have corrected in recent times which gives me an opportunity to buy at ...

Tracking error can end up being a hidden cost when it comes to exchange traded fund investing. This fact is enough reason to pay attention to the benchmark that a desired ETF is tracking.

International index funds and ETFs showed large tracking errors in 2009. In my first post on this topic, I explained how the time differences between North American and overseas markets can make it ...

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 ...

Diversification is an essential element in the investment journey. The underlying idea is to spread the amount invested in different asset classes to reduce the risk while getting maximum returns.

A passive fund or an exchange traded fund (ETF) attempts to perfectly mimic an index. However, their returns don’t perfectly trail the respective index. Tracking ...

In a previous post, I pointed out that many international equity ETFs showed large tracking errors in 2009. For example, the iShares MSCI EAFE Index Fund (XIN), which tracks European and Japanese ...

In an ideal world, a tracker fund or exchange-traded fund (ETF) would perfectly match the index it is supposed to follow so a FTSE 100 tracker will deliver exactly the same return as the FTSE 100. In ...

There’s a fading but lingering misconception that socially responsible investing (SRI) means sacrificing returns against a benchmark. When evaluating the pros and cons of responsible investing, ...