Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Some ETFs Were Off-Target in '09 Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, February 19, 2010

Some ETFs Were Off-Target in '09

News summary by MFWire's editors

Many exchange-traded funds tracking indexes missed the mark last year. Coming a day after his Wall Street Journal report that ETFs are gaining popularity among retail investors, Ian Salisbury, in Friday's Fund Track column, follows up by highlighting new data from a Morgan Stanley released this week shows 54 ETFs showed "tracking errors" of three to ten percentage points.

The range of ETF tracking performance varied greatly in 2009, but in general, funds tracking "exotic investments" or foreign indexes, had greater trouble.

In 2009, the $40 billion iShares MSCI Emerging Markets Index ETF had a 71.8 percent return, falling 6.7 percentage points behind the 78.5 percent return on the index its benchmark by. The SPDR Barclays Capital High Yield Bond ETF had a return of 50.5 percent, compared to 63.5 percent on the index it tracks, falling behind by 13 percentage points.

However, many funds fared better. The SPDR, the largest ETF, lagged the S&P 500 by just 0.19 percentage points in 2009. And the $200 million Vanguard Telecom Services ETF actually beat its benchmark's 12.6 percent return by 17 percentage points. Salisbury does not note the 2008 results of any of the funds.

"Portfolio management is a balancing act," iShares portfolio manager Dina Ting told Salisbury. "Over the long term, we've delivered on our objectives." 

Edited by: Daniel Tovrov


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use