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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: J L Segal who wrote (83299)	6/21/2002 6:17:01 PM
From: Steve Lee	Read Replies (1) \| Respond to of 99280

Normally the funds have a disclaimer in their prospectus that say how exactly they are committed to tracking the index. The norm is to endeavour to update changes within 3 trading days, but they generally also have a sentence stating that such close tracking may not always be possible and will be undertaken on a best efforts basis.

To: J L Segal who wrote (83299)	6/21/2002 6:22:36 PM
From: public_heel	Respond to of 99280

JLS - Yes, it could be interesting, but not necessarily, and it's not at all predictable. S&P removals and additions happen all the time, and the funds have developed elaborate defense mechanisms to keep from getting screwed. I wasn't watching today on Level II, and I have no idea if the traders that are going short in anticipation of buying from the funds were at work today or not. If they were, then they will want to make sure the price doesn't go back over the price they shorted at, or they will lose out in their transaction with the funds.