New CAS may reduce ETF tracking error but poses challenges for arbitrage funds: Report
India's new Closing Auction Session (CAS) mechanism is expected to improve execution for exchange-traded funds (ETFs) by reducing tracking error, but it has also created unintended challenges for arbitrage fund investors due to wider divergence between cash and futures closing prices, according to an Invesco Mutual Fund report.
India's new Closing Auction Session (CAS) mechanism is expected to improve execution for exchange-traded funds (ETFs) by reducing tracking error, but it has also created unintended challenges for arbitrage fund investors due to wider divergence between cash and futures closing prices, according to an Invesco Mutual Fund report.
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