Sorting the Rebels From the Conformists
Tracking error helps you set expectations.
Mentioned: Fairholme (FAIRX)
, Vanguard Global Equity Inv (VHGEX)
, T. Rowe Price Equity Income (PRFDX)
, Sequoia (SEQUX)
, Templeton Global Bond A (TPINX)
, Vanguard Growth & Income Inv (VQNPX)
, Vanguard Global Capital Cycles Investor (VGPMX)
, T. Rowe Price Comm & Tech Investor (PRMTX)
, Hotchkis & Wiley Mid-Cap Value A (HWMAX)
, Bausch Health Companies Inc (BHC)
This article originally appeared in the February issue of Morningstar FundInvestor.
Does your fund have a surprise in store? Tracking error might give you the answer. Tracking error is a favorite measure of the investment industry. It measures the volatility of a fund that is not explained by the fund's index. In other words, it measures how much a fund's returns have varied from the index's.
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Russel Kinnel has a position in the following securities mentioned above: FBNRX, TPINX. Find out about Morningstar’s editorial policies.