Funds, ETFs & Index Investing
3 terms
Thematic Fund
Funds, ETFs & Index Investing
qualitative
An equity fund investing at least 80% in companies linked by a theme that spans multiple sectors.
Test: minimum 80% allocation to stocks selected by a stated theme rather than by a single sector classification
Total Return Index
Funds, ETFs & Index Investing
index points
An index variant that assumes dividends are reinvested, so it measures the full return from holding the constituents.
Total Return = Price Return + Dividend Yield, compounded over the period
Tracking Difference
Funds, ETFs & Index Investing
%
The gap between a passive fund's return and its index's return over a period.
Tracking Difference = Fund Return - Index Return over the same period