A friend pointed out that INDY, the third-highest India-focused ETF in terms of average trading volume, has a 5-year annualized return of 6.29% but the Xtrackers Nifty 50 Swap UCITS ETF by DWS on the Swiss exchange SIX, a dollar-adjusted ETF tracking India's leading index, returns 9.8% over the same period.
That's a pretty huge tracking error. I'm not sure if the tracking error is similar for other iShare products and I'm missing something.
Heck, if you're an Indian and can buy an India-domiciled ETF like the ICICI Prudential Nifty 50 index fund then your investment would have grown by 13.64% on average over 5 years. (Of course, the INR has fallen 20.5% against the USD over the same period.)
I wonder if there's a US-listed ETF that better tracks the Nifty 50 which is like India's version of S&P 500.
edit: Sorry about the title. It should read "The surprisingly high tracking error shows that INDY, the leading US ETF tracking India's Nifty 50, is quite inaccurate."
Submitted October 11, 2022 at 06:05AM by wantstoknowyourstory https://ift.tt/eQEZY3C
