Last time I described how ETFs track their underlying indices. I made my point using this chart that compares 10-year performance of the most liquid SPY ETF (red) and the underlying S&P 500 index (blue)… You can find the whole article HERE.
Index is a time series describing change in value of some underlying assets. For example the widely known S&P 500 index tracks performance of the 500 largest US stocks. There are cap weighted indices where each stock in the index has a weight proportional to its market cap, sometimes adjusted for free float… You can […]