The Iseq ETF

Any one got any idea what’s going on with this? As I understand it this ETF tracks the vast majority of the market so you would need to see huge movements in stocks outside the top 20 for any meaningful tracking error to arise & yet…

The 1 year graph - from bloomberg

img209.imageshack.us/img209/5736/iseq1yearqa1.th.jpg

and the 3 month graph from bloomberg
img340.imageshack.us/img340/534/iseq3yearyv6.th.jpg

Anyone got any theories on what might be happening here? Why might this level of tracking error arise?

Sean

You are sure you are comparing like with like?

I am not right into ETFs, but is the ISEQ ETF based on the ISEQ20? If so are you plotting against the ISEQ all stock, or the ISEQ20?

The ETF tracks the top 20 stocks from the ISEQ.

The ETF can diverge from the index because of charges and the lean the market maker has at any time.

If they is alot of buying then the market maker will lean their price up and vice verse if there is alot of selling. This can move the price around quite a lot.

check this site out:
uk.finance.yahoo.com/q?s=%5EISEQ

shows the graph over more time periods