FYI: he recent hiccups around the VanEck Vectors Junior Gold Miners ETF (GDXJ) have highlighted something few people talk about: what index managers actually do. And I think it’s genuinely underappreciated.
There’s a belief in some circles that managing a fund that tracks an index is like riding a bicycle: Yeah, you need to learn, but once you do, it’s just on autopilot.
Nothing could be further from the truth.
In no particular order, here’s what goes right every day in a solid ETF shop—which nobody ever sees—and what could go horribly wrong.
Regards,
Ted
http://www.etf.com/sections/blog/running-index-etf-harder-it-looks?nopaging=1
