Tracking difference and error indicate how well an index fund follows its intended path. Here's how to avoid common analytical mistakes. Download the report now.

By Leo Chen We discussed the goal of leveraged ETFs previously - to provide daily returns that match the desired ratio over the underlying index (here).

Tracking error is defined as the standard deviation of the difference between the fund’s returns and the returns on the index.

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 ...