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Tag Archives: tracking error

Sep 11, 2024

Maintaining Low Tracking Error: The Construction of the S&P 500 ESG Index

When it comes to integrating environmental, social and governance (ESG) factors into investment strategies, market participants may be interested in deviations from the benchmark. Tracking error is a widely used metric that helps measure the size of these deviations. Improving the ESG profile of a composition often means accepting a higher tracking error due to…

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