Business & Finance Homework Help

Question

Download several years (1-2) of SPY. Find two (2) other ETFs that track the S&P500 index. (5 points)

Compute the returns, active returns, and average active return. (5 points)

Compute the tracking error and mean-adjusted tracking error. (5 points)

Which ETF tracks the S&P500 better? (2 points)

Download the Select SPDR funds (tickers = XLB, XLE, XLEF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY) over the same time period as you did for SPY. (5 points)

Compute the returns. (5 points)

Write a function that computes active return internally, and uses that to compute the Mean-Adjusted Tracking Error (10 points)

Determine which single sector fund best tracks the S&P500. (3 points)