E emk662 Aug 14, 2007 #1 I think I need to build a portfolio simulating DJIA index. How to minimize the tracking error? Your help will be greatly appreciated.
I think I need to build a portfolio simulating DJIA index. How to minimize the tracking error? Your help will be greatly appreciated.
N nazzdack Aug 15, 2007 #2 ?.....buy the DOW-Diamonds, the Dow futures contract(s) and/or the 30 underlying components of the index.
?.....buy the DOW-Diamonds, the Dow futures contract(s) and/or the 30 underlying components of the index.
B Beast84 Aug 15, 2007 #3 Quote from nazzdack: ?.....buy the DOW-Diamonds, the Dow futures contract(s) and/or the 30 underlying components of the index. More... ^^^^^^Exactly
Quote from nazzdack: ?.....buy the DOW-Diamonds, the Dow futures contract(s) and/or the 30 underlying components of the index. More... ^^^^^^Exactly
D dtan1e Aug 15, 2007 #4 replicate 95% of the holdings in the dow, or even better everything => index hugging
