# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Tracking Error

What is Tracking Error?

Tracking error assesses how closely a fund tracks a benchmark by comparing the performance of the fund to that of the benchmark.

Passive strategies, which aim to replicate a benchmark’s return, often use tracking error to measure their success. Low tracking error means a passive fund’s performance closely followed the benchmark.

 

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