Nevertheless, ETF investors should note that tracking errors are common because it simply reflects the costs that the index don’t incur, such as the expense ratio. Dan Dolan, a director for ALPS ...

Most investors assume index funds will always deliver market-like returns. But when tracking error begins to rise, SIP ...

Investors may bristle at the mere mention of tracking error—but that’s what helps them keep more of their money while maximizing their after-tax returns. Taxes can have a major impact on the long-term ...

Passive investing strategies aim to minimize cost differentials, crucially measured in basis points, by closely tracking benchmark indexes. Tracking difference and ...

Equity factor strategies have experienced performance challenges relative to cap-weighted indexes since the COVID-19-induced market crash of 2020. In cap-weighted indexes, companies with higher market ...

Investors will often want to know how closely the returns from a fund or portfolio follow a benchmark index (such as the FTSE 100 or the S&P 500). In some cases, they want to make sure that an index ...