What is a good tracking error for an ETF? A good tracking error for an ETF is one that is low and consistent. In general, an ETF with a tracking error of less than 1% is considered to be well-managed. However, it is important to note that the lower the tracking error, the more likely […]
How Important Is Tracking Error Of Etf
The tracking error of an ETF (exchange-traded fund) is one of the most important metrics to consider when investing in this type of fund. This metric measures how closely the ETF’s performance matches that of its underlying index. A low tracking error indicates that the ETF is closely following the index, while a high tracking […]
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