Passive funds aim to mirror their benchmark indexes as closely as possible, making every basis point matter. But perfect tracking is a fantasy. While investors can expect index funds to mimic their ...

Despite those examples, ETFs generally have very small tracking errors. That's because fees are very low, and, since ETFs are traded like stocks, they do not have to buy and sell securities to meet ...

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 ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor ...