Hi All,
I was researching some ETF funds recently in Morningstar and noticed some had negative rates in their portfolio turnover.
Does anyone have any insight into why that might be?
Thanks,
Paul
In case anyone else is interested!
The Investment Product Portfolio SEC Turnover Rate is a measure of an Investment Product’s trading activity over a one year period of time. The Portfolio Turnover Rate is measured by taking the lesser of an Investment Product’s purchases and sales trading activity over the previous year, divided by the Investment Product’s one year average Total Assets Under Management Amount effective the date of the calculation. The SEC Portfolio Turnover Rate is derived using a calculation methodology that has been prescribed by the Securities and Exchange Commission (SEC) who acts as a financial regulatory organization in the United States.
The Investment Product Portfolio FCA Turnover Rate is a measure of an Investment Product’s trading activity over a one year period of time. The Portfolio Turnover Rate is measured by subtracting the result of an Investment Product’s subscription and redemption activity from its portfolio trading activity over the previous year, divided by the Investment Product’s one year average Total Assets Under Management Amount effective the date of the calculation. The FCA Portfolio Turnover Rate is derived using a calculation methodology that has been prescribed by the Financial Conduct Authority (FCA) who acts as a financial regulatory organization in the United Kingdom.