“Electric Vehecle” Themed Index Creation and Existing ETFs – CARZ, EKAR, DRIV, and XKST

When it comes to creating an "electric vehicle" themed fund, the first question we ask is "is there any existing one in the market and how is it/are they doing?", then we can compare our approach and performance to existing ones to gauge if ours has a competitive edge. CARZ, EKAR, XKST, DRIV, KARS are … Continue reading “Electric Vehecle” Themed Index Creation and Existing ETFs – CARZ, EKAR, DRIV, and XKST

Self Indexing, Direct Indexing, and Motif

With the rapid growth of passive investment, indexes, usually serving as the underlying benchmark for the creation of such funds, are gaining more attention and traction too. The indexing space is dominated primarily by three companies in the U.S. - MSCI, S&P and FTSE Russell. There are two salient issues with these dominant players. First, … Continue reading Self Indexing, Direct Indexing, and Motif

Intricacies in Running an ETF

There are three intricacies in running an ETF that I come up with: coping with the cash or cash-like instrument; usage of global futures and security lending; and dealing with corporate actions. Cash exists because of redemption needs, fees, and expenses. Some stock components dispense dividends regularly, accounting for cash in portfolios too.  In calculating index returns, … Continue reading Intricacies in Running an ETF

Running an ETF or Index Fund, Actively Managing a Fund Using Customized Index and Active Indexing

These concepts could be confusing, that's why I list them in the title. To decompose, there are two parts. Running an ETF or index fund ought to be compared to actively managing a fund using a customized index, while active indexing is an entirely different thing to understand. Let's elaborate on the former part, running … Continue reading Running an ETF or Index Fund, Actively Managing a Fund Using Customized Index and Active Indexing