In my article “What is Investment Risk” I elaborate the different kinds of investment risk associated with investments into publicly listed securities as well as mutual funds and ETFs. Since understanding the risks implied for a portfolio is key for the success of an investment strategy, it is worthwhile to shed a light on the common risk measures to evaluate risk. There are several measures to evaluate investment risk from different angles, since each of the measures provides different insights into the potential risks associated with an investment. Even as the list below may not be complete, it includes some

This Monday Morning Memo is written based on a speech by Jean-René Giraud, Chief Executive Officer at TrackInsight  during the TrackInsight Investor Summit–Germany in Frankfurt on March 29, 2017. During his speech Jean-René discussed some common errors advisors and investors make as they evaluate exchange-traded funds (ETFs). Tracking error as a measure to evaluate the tracking quality of an ETF The first wrong assumption he stressed was that investors believe tracking error is a good measure to evaluate the quality of an ETF; they think a low tracking error is good, while a high tracking error is bad. He pointed