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THE SOUTH AFRICAN INDEX INVESTOR |
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“Greater rewards, lower costs” |
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INDEX PRODUCTS AND RELATED LINKS |
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The Passive/Active Investment Spectrum Download document...
Pure Index Funds: Exchange Traded Funds; Collective Investments
Enhanced Index Funds
Active Quantitative Funds
Pure Active Funds
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Strategy |
Expected Tracking Error |
Management Costs |
Expected Excess Return |
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Pure Index Funds |
<1% |
0.5% - 0.8% |
0% |
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Enhanced Index Funds |
1% - 3% |
0.75% - 1% |
2% |
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Active Quantitative Funds |
3% - 7% |
1.25% - 1.5% |
3% |
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Pure Active Funds |
3% - 7% |
1.5% - 2% |
5% |