⚠ QuantPlus EarningsPro is a financial publication, not an investment adviser. QuantPlus Analytics, LLC is not registered as an investment adviser with the Securities and Exchange Commission or with the Ohio Division of Securities. Nothing published here is personalised investment advice, a recommendation to buy, sell or hold any security, or a forecast of what any security will do. Our figures measure what companies have already reported to the Securities and Exchange Commission. Past results do not indicate future results. All investing involves risk, including the loss of the amount you invest. Consider speaking to a qualified professional about your own situation before acting on anything you read here. The founder owns shares of some of the securities covered. Rankings are produced by applying the same method to every company and are not influenced by those positions.

← All 72 terms

Tracking Error

Market Structure

Tracking error is the divergence between the price behavior of a portfolio (typically an index ETF) and the price behavior of its benchmark index, measured as the standard deviation of return differences.

For an index ETF, tracking error tells you how closely the fund actually follows its benchmark. A high tracking error means you're not getting the index return you're paying for.

Further reading: Wikipedia

← Back to the glossary