Index Quality
iShares believes that quality ETFs must track quality indexes. We work closely with well-known index providers to design ETFs that seek to track thoughtfully constructed, transparent market indexes. With representation on the index committees of most primary index providers, both domestic and international, we have firsthand insight into construction methodologies and work closely with providers to monitor and suggest enhancements to index quality over time. By focusing heavily on index quality, we believe we can create ETFs that offer investors diversified, broad exposure to specific asset classes, markets, or sectors.
FAQs
- Q. Why are the index level values available in the Tracking Error Chart different from other sources?
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A. Most indexes provide a price and total return index level, and different sources use different values. iShares.com uses total return index levels for all indexes, except for the following:
- The NASDAQ Biotechnology Index uses price returns (total return index levels are not provided by the index provider).
- The MSCI Indexes use net dividend index levels (the total return net of taxes).
- Q. What period of time is used to calculate index fundamentals displayed on the Index Details pages of iShares.com?
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A. The calculations are based on 10 years of index history. In cases when 10 years of historical data is not available, the calculation is from the month-end date following the inception of the index.
