Overall, an ETF that has a difference between its net asset value and benchmark compared to its expense ratio of 25 to 30 basis points is worthy of caution.
For example, even though a Nuke would cause ninety billion dollars in destruction the probability of this type of attack is so low that it creates a vector value below the benchmark needed to consider it a daily threat.
Its five-year average annual return of 6.6% was 2.8 percentage points better than that of its benchmark, the Russell Mid Cap Value index.
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And we should point out that not holding Apple in the Russell 3000 Value index had cost that benchmark 349 basis points of performance versus the Russell 3000 Growth index.
To do this, take your ETF's net asset value, compare it to its benchmark, and if it's significantly above the expense ratio, look into why that is.
And we have ratings agencies that are duty bound to value such debts on a transparent global benchmark.
Of the thirty nine data points (13 x 3 years) only Large Cap Value funds beat (one time) their benchmark.
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Its benchmark government bond trades at 57% of its face value, suggesting that private investors fear losses if and when a new deal is brokered.
Hong Kong, where nearly half the market value is accounted for by shares of mainland companies, the benchmark Hang Seng index has been up by 27% year-to-date, twice the gain of the Dow Jones industrials in the United States.
In The Dangerous Seduction Of LTV, venture capitalist Bill Gurley of Benchmark Capital pointed out ten pitfalls associated with one increasingly notorious metric: the lifetime customer value model (LTV).
That's the benchmark figure from which a group of economists are starting, when they try to figure out the value of the happiness that can be generated by the Olympics and Paralympic Games this summer.
If the benchmark moved up and down drastically along the way, you may end up losing a significant percentage of the value of the ETF if you bought and held it.
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