Most experienced investors and advisors will consider how well an ETF tracks its benchmark, and gravitate towards those with the lowest tracking error, reports Murray Coleman for The WSJ.

By The ETF Professor Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that. In some instances, a high tracking ...

Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that.

ETF providers last year got better at what they do, serving up funds that more closely tracked the performance of their underlying indexes, according to a Morgan Stanley study that found tracking ...

Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that.

Tracking error tells you everything you need to know about how well your ETF is run, right? Think again.

Along those lines, classifying tracking errors as "high" and "low" depends on the ETF's returns.

In concept, tracking error is similar to volatility; instead of referencing absolute returns, though, tracking error is in reference to a benchmark.

In four market fluctuations of less than 20%, an investment in an Ultra ETF just lost .23% in ‘tracking error’. This little test explains why I like to ‘short’ Ultra ETFs.

Tracking error can end up being a hidden cost when it comes to exchange traded fund investing. This fact is enough reason to pay attention to the benchmark that a desired ETF is tracking.

Tracking error tells you everything you need to know about how well your ETF is run, right? Think again.

ETF providers last year got better at what they do, serving up funds that more closely tracked the performance of their underlying indexes, according to a Morgan Stanley study that found tracking ...