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Don't be fooled by 'Dreamwashing'

Many Happy Returns

CHAPTER

The Tracking Error in Index Trackers

The study looked at the performance of funds in Europe from 2010 to 2018. It had a sample of just over 3,000 equity funds that were domiciled in the EU. The main limitation here is that as far as I know, active share is reported on a voluntary basis in the EU by funds. So it'll look like a big active share, but in fact, the actual performance will be almost identical.

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