Abstract
This study investigates the tracking ability of domestically versus internationally indexed Exchange-Traded Funds (ETFs) listed on the Johannesburg Stock Exchange (JSE) during the COVID-19 pandemic. Utilising a pre-post analysis, the research examines ETF performance across four periods: overall, pre-COVID, during-COVID, and post-COVID. The methodology involves analysing tracking errors to assess the ETFs' ability to replicate benchmark indices. Significant findings indicate that domestically indexed ETFs consistently exhibited lower tracking errors than their international counterparts before and during the pandemic. The pandemic-induced market volatility had a pronounced impact on the tracking accuracy of internationally indexed ETFs. The results underscore the resilience of domestically indexed ETFs in volatile market conditions, highlighting their potential for providing more stable returns to investors during economic uncertainty. These findings have significant implications for investment strategies and policy, suggesting a preference for locally indexed ETFs during market turmoil. Further research is recommended to explore the long-term impacts of global market disruptions on ETF performance.