Ex-post tracking error, also known as realized tracking error, is a backward-looking measure. It provides a factual account of how closely the portfolio has tracked its benchmark over a specific ...

The risk of your portfolio trailing popular benchmarks, such as the S&P 500, is a real risk that investors must take into account ...

Investors may bristle at the mere mention of tracking error—but that’s what helps them keep more of their money while maximizing their after-tax returns. Taxes can have a major impact on the ...

Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that. In some instances, ...

A passive fund or an exchange traded fund (ETF) attempts to perfectly mimic an index. However, their returns don’t perfectly trail the respective index.

Tracking difference is the easiest of the two to understand. It refers to the difference between the return on the index and the return of the fund over a set period of time.

Some of the worst offenders last year were the $6 million iShares MSCI Emerging Markets Financials ETF (EMFN), which had a 5.3% tracking error, the $40 million Guggenheim S&P 500 Equal Weight ...