Understanding exchange-traded funds, mutual funds, indexes, and pooled investment vehicles.
This scope is designed to help you build a practical understanding of ETFs & Funds. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
A clear, rigorous explanation of tracking error in ETFs and index funds, including what it measures, why it exists, how it is calculated, and how it fits within the broader market structure of index replication and fund operations. Practical examples highlight typical sources of deviation between a fund and its benchmark.
A rigorous explanation of ETF tax efficiency: what it is, why it exists, how it fits within market structure, and when it may or may not hold in practice. Focused on mechanisms such as in-kind creation and redemption, capital gains distributions, and structural differences across ETF types.
An in-depth explanation of how mutual funds and exchange-traded funds are structured, priced, and operated within modern markets, including why these vehicles exist and how they function in real-world contexts without offering investment advice or strategies.
A rigorous overview of the principal risks associated with exchange-traded funds, how those risks arise from ETF structure and market plumbing, and what real-world events reveal about ETF behavior under stress. The article defines key risk categories and illustrates them with practical, non-prescriptive examples.
A clear explanation of when and why exchange-traded funds may lag their benchmarks, how this fits into ETF market structure, and what real-world frictions drive tracking differences across equities, bonds, commodities, and leveraged products. No strategies or recommendations.
