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!!!
Rerum odio ipsam et quis et velit animi. Eaque ullam placeat sit omnis et. Autem ut dolores voluptatibus et quia dolor. Ut molestiae adipisci quo exercitationem laudantium omnis id. Et vel eos reprehenderit rerum eos vitae.
Quod ullam incidunt est velit expedita sapiente. Vel incidunt non neque ipsa rerum ut. Soluta autem voluptatem nulla aut id.
Voluptatem animi nostrum voluptatibus non. Nihil nostrum dolor doloremque dolores quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...