Exchange Traded Funds (ETFs) have become a virtually indispensable component of a modern client portfolio. While traditional investment funds have dominated client portfolios for decades, ETFs have become increasingly popular over the last ten years. The growing importance of ETFs is due to their transparent, simple investment objective; to generate market returns by tracking a reference index.
Do all European ETFs share the same desirable characteristics? What are the most important criteria for determining how well ETFs replicate their indices?
This is one of the areas analyzed by the study, which has produced a number of interesting and insightful findings.
Thomas Merz, lecturer at the ZHAW School of Management and LAW and Head of UBS ETF Europe: Working Paper No. 4 "Tracking Risk of ETF Revisited"
