Passive ETFs hit by billion-dollar rebalancing costs

Research shows US index trackers lose out on nearly $4bn a year due to price moves created by front-running.

CRSP Managing Director and Director of Indexes dive into this topic in this article by Financial Times. 

Related Posts

CRSPMI

CRSP Market Indexes US Market Update – August 2024

Notable items with this release include:

– Smaller companies out-performance in July was reversed in August, with Micro Cap experiencing a -1.45% return in August compared to last month’s return of 12.01%.
– Energy was the only sector with negative returns in August, it’s lag in performance compared to the other sectors over the past 12 months created a fair sized gap in 1 year cumulative returns.
– Value continued to outperform the growth counterparts within each cap segment.

Read More »
CRSPMI

CRSP Market Indexes US Market Update – July 2024

Notable items with this release include:

– Value outperformed Growth across all cap segments
– Smaller companies had a great month, with Micro cap returning 10.17% over Total Market
– Technology was the only Sector with a negative return for July

Read More »
Scroll to top