Index error causes Carillion losses for ETF investors
Hey monkeys, i just saw this news and it really confused me.
It says S&P should've removed this company back in December from one of their indices but they didn't, which caused loss for investors. what is confusing me is how come the losses? Doesn't ETF just track its underlying index, i.e, if the index remove the company then ETF remove it, vice versa. Or it's because the ETF anticipate the company will be removed so they removed it in their portfolio so that they didn't match the index? Where does the loss come from? Any advice is greatly appreciated!!!
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