Tag Archives: lyxor

Tracking error of Lyxor ETF

I am glad to see Lyxor ETF Singapore publishes tracking error of their ETFs. Below are the tracking errors of the two tentative Lyxor ETFs and two existing ETFs in my portfolio:

0.18% Lyxor ETF MSCI AC Asia Pacific Ex Japan
0.18% Lyxor ETF Japan (TOPIX)
0.05% Vanguard Total Stock Index ETF
0.30% iShares DJ STOXX 50

Source:

The above comparison is indicative only. This is because the period of the tracking error is the last 12 months or since inception for Lyxor and iShares ETFs. For Vanguard Total Stock Index ETF, the tracking error is the 12 months in 2006.

To get a feel on the range of tracking error for different ETFs, please read Tracking Error In Exchange Traded Funds. For broad market U.S. equity ETFs, the average tracking error is slight below 0.30%. For International funds tracking indexes like the MSCI EAFE and S&P Latin America 40, the average tracking error is sightly above 0.70%.

Advertisements