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📢 Exciting News: Explore the latest Index fund tracking error screener for September 2024! This comprehensive screener is designed to help users evaluate the efficiency of index funds in tracking their underlying benchmarks. Want to learn more? Click the link below to access the full post. Link: https://lnkd.in/e4FbDmyq

🌟 Exciting news! Check out our latest blog post "Index fund tracking error screener Aug 2024" on freefincal. This comprehensive index fund screener is built on tracking error and returns difference relative to benchmarks, providing valuable insights into the efficiency of tracking various indices. Don't miss the opportunity to enhance your understanding of index fund performance. Read the full post here: https://lnkd.in/ggEtGjTS #IndexFunds #FinancialAnalysis #InvestingInsights

Introducing the latest blog post on Freefincal! "Index fund tracking error screener May 2024" provides a comprehensive overview of an index fund screener based on tracking error and returns difference with respect to benchmarks. This tool aims to assist users in evaluating how efficiently an index fund has tracked its underlying benchmark, as well as understanding the differences in tracking various indices. Explore the full post at https://lnkd.in/gVguZWYv.

My latest article for Financial Advisor examines the impact of the diminishing role of active managers. https://lnkd.in/deYS35ym #investmentstrategies #activeinvesting #indexing

How to Check Tracking Error of Index Funds: A YouTube Video Description In this video, you'll learn how to easily check the tracking error of index funds! Tracking error tells you how closely an index fund follows its target index. A lower tracking error means the fund's performance is more aligned with the index, which is generally desirable for index investors.

Ever wondered how many active funds actually beat the S&P 500? Spoiler alert: it’s not as many as you'd think! 📉 According to recent data, only a tiny fraction of active funds manage to outshine the S&P over the long haul. So, if you’re an active fund manager, you might want to consider taking up a new hobby—like competitive knitting! 🧶 But hey, if you do beat the S&P, congratulations! You’re part of an elite club. Is it magic? A lucky charm? Or just a really good crystal ball? 🔮 In the meantime, let’s all raise a glass to passive investing—the real MVP! 🍷 #Finance #Investing #FundManagement #SPLife #PassiveIncome #CheersToTheMarket

Have had a couple people ask us about capital market assumptions for Return Stacked® ETF. i.e. If you have a product that is 100% A + 100% B - 100% Cash, how do you calculate the expected return, volatility, and correlation to other asset classes? Assuming you have the expected returns and volatilities for A, B, and Cash, as well as their correlation to other asset classes… Let’s assume the Return Stacked® ETF portfolio: P = A + B - Cash where A and B are assets. The expected return is easy: E[P] = E[A] + E[B] - E[Cash] The volatility is simple portfolio math as well: S[P] = sqrt(S[A]^2 + S[B]^2 + S[Cash]^2 + 2CORR[A,B]S[A]S[B] - 2CORR[A,Cash]S[A]S[Cash] - 2CORR[B,Cash]S[B]S[Cash]) Then the correlation between P and some other asset Z is equal to: CORR[P, Z] = CORR[A + B - C, Z] Using the fact that CORR[X,Y] = COV[X,Y] / (S[X]S[Y]), we have: COV[A + B - Cash, Z] / (S[P]S[Z]) = (COV[A, Z] + COV[B, Z] - COV[Cash, Z]) / (S[P]S[Z]) = (CORR[A,Z]S[A]S[Z] + CORR(B,Z)S[B]S[Z] - CORR[Cash,Z]S[Cash]S[Z]) / (S[P]S[Z]) = (CORR[A,Z]S[A] + CORR[B,Z]S[B] - CORR[Cash,Z]S[Cash]) / S[P] Since we have all the information in this last line, we can calculate the correlation!

The results of second batch of mutual fund stress tests are out, let us find out what does stress test mean. Stress test determines the time within which a mutual fund portfolio can be liquidated under unfavorable market conditions. Stress tests usually entail putting the entity through a sequence of hypothetical scenarios that mirror extreme market conditions, like significant drops in asset prices, abrupt shifts in interest rates, or economic downturns. By examining how the entity reacts to these stress scenarios, analysts and investors can assess its capacity to endure adverse conditions and pinpoint possible vulnerabilities and risks. This data is essential for investors seeking to evaluate the risk level of a mutual fund and make well-informed choices regarding their investment distributions.

Swing Pricing: A Tool for Fair Fund Management The article from Paperjam explains swing pricing, a technique used by fund managers to protect existing investors during periods of high market activity. Swing pricing adjusts a fund's net asset value (NAV) to account for the costs associated with large investor transactions, such as buying or selling in bulk. This adjustment ensures that the impact of these large transactions is borne by the investors causing them, rather than affecting all investors in the fund. It's a crucial tool for maintaining fairness and stability, especially in volatile market conditions. Read more here: https://lnkd.in/evt488mi

UTM Option Strategies Fund : Feb update (as of Feb 16, ‘24) Performance (%) Feb24 YTD'24 2023 2022        2021 +1.6% +1.6% +16.5% +15.9% +24.7% Sharpe Ratio : 1.6 Correlation with S&P 500      : 0.27 AUM : > US$ 50 m The fund is now in its fourth year and this was the first month of the year.    Volatility continued to be muted and the market continued its upward move on the back of expectations of imminent rate cuts, putting some pressure on our short calls. However, the call book (centred around 5175) had never really been grown and hence the risk was manageable. There was some tempering of the market’s exuberance towards the end of the period which also took some of the pressure off. The sharp move up triggered a put recharge about a week before expiry. The suggested level at 4800 was judged by the managers to be somewhat aggressive and hence only half the put book was recharged from around 4500 to around 4800. A sharp down move during expiry week made for a couple of uncomfortable nights, but eventually the upward move prevailed, and all positions expired without any further adjustments.