There are some good thoughts in this article. From my perspective, I’d like to know how much risk did an ETF take to achieve the return. If an ETF had high correlation and tracking error was low, I might still prefer a different ETF with low correlation and higher tracking error if it had a much lower standard deviation (risk). Therefore, an advisor may want to add the sharp ratio to the statistical analysis of the ETF as a way to measure relative risk-adjusted return.
Submitted April 06, 2017 at 07:07PM by iSectors http://ift.tt/2o80pnv
