What is tracking error?Tracking Error
How much a fund's performance differs from the index it tracks.
Learn “tracking error” in an animated lesson
- Indexes & ETFsHow to Choose an ETF
There are often several ETFs tracking the same index. Compare fees, tracking difference, fund size and bid-ask spread, and work out which is cheaper for long-term holding vs. frequent trading.
- Indexes & ETFsFees and Compounding
A 0.03% and a 1% annual fee look similar, but after 30 years the gap is huge.
Related terms
See how “tracking error” works for yourself with an animation you can drag and play.
Go to “How to Choose an ETF”