Tracking error tells the difference between the performance of a stock or mutual fund and its benchmark.

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.

Tracking difference and error indicate how well an index fund follows its intended path. Here's how to avoid common analytical mistakes. Download the report now.

Investors need to understand the sources of the tracking error, however, before making a judgment on whether the ETF manager is doing the job to the best of their ability, Costandinides says.

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.

By Leo Chen We discussed the goal of leveraged ETFs previously - to provide daily returns that match the desired ratio over the underlying index (here).

Several things can contribute to tracking error, but the most likely culprit is optimizing.