Fund Spy

Sorting the Rebels From the Conformists

Russel Kinnel

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.

Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.