So what use is a low TE if that means tracking a benchmark with volatile returns? Table 2 shows the standard deviation (absolute volatility) of the benchmark and, for good measure, the median manager.

CalPERS' board is expected to decide in September whether to remove alternative investments from its tracking-error calculation used to control risk. Deciding to do ...

Equity factor strategies have experienced performance challenges relative to cap-weighted indexes since the COVID-19-induced market crash of 2020. In cap-weighted indexes, companies with higher market ...

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, ...