Why May an Index Fund Portfolio Not Exactly Replicate the Index

question 32

Essay

Why may an index fund portfolio not exactly replicate the index?

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Definitions:

Thirty Years' War

A destructive conflict in Central Europe between 1618-1648, involving many European powers, initially fought largely as a religious war between Protestants and Catholics.

Saint Bartholomew's Day Massacre

A targeted group of assassinations, followed by a wave of Catholic mob violence, against the Huguenots (French Calvinist Protestants) in 1572.

Huguenots

French Protestants who followed the Reformed tradition, heavily persecuted in France before being granted rights in the Edict of Nantes in 1598.

Tithe

A tax or levy, traditionally one tenth of a person's income, paid to support the church or clergy.