Deakin Business School MAF707: ETF Investment and Performance Report

This report provides a comprehensive analysis of Exchange Traded Funds (ETFs), focusing on their importance, types, and performance. It examines nine specific ETFs, including Australian, German, and US-based funds, assessing their fund structures, objectives, sector diversification, and historical performance. The analysis includes risk assessments, particularly tracking errors, to evaluate the funds' deviation from their underlying indexes. Furthermore, the report explores the benefits of ETFs as investment vehicles and compares their performance to index funds. The study also constructs a hypothetical portfolio of the nine ETFs and calculates its returns based on Markowitz Portfolio Optimization. The report concludes with insights and recommendations for investors considering ETF investments, drawing on the data and analysis presented to guide informed decision-making.