Do you think it is possible to create a portfolio containing only a sub-set of the global stock market, say 100 stocks, to accurately track the global stock market? The goal is not to beat the market, just to track it as accurately as possible. I know that some ETFs use an "optimised sampling strategy" to replicate some markets. How do they do it?
Are there any promising methodologies you know of, or literature I could look into?
How would you go about selecting those 100 stocks? Would you have to rebalance over time, and how often?
Submitted August 17, 2017 at 05:59AM by diacachimba http://ift.tt/2v4BJfM
