RT Journal Article
SR Electronic
T1 Why Indexation Can Be a Dangerous Strategy
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 58
OP 63
DO 10.3905/jwm.2003.320475
VO 6
IS 1
A1 Harry M. Kat
YR 2003
UL https://pm-research.com/content/6/1/58.abstract
AB In this brief note, the author shows that significant autonomous changes may occur in the risk-return profile of index replicating portfolios. Although the name of the index doesn't change, the underlying risks do. Investors should therefore check regularly whether the index is still what they think it is, and if not make the necessary adjustments.