tracking difference

Is tracking difference and tracking error same thing?
Is there somewhere i can see the tracking difference on a chart between lets say FTSE Allworld index v an allworld fund /etf?

Comments

  • Linton
    Linton Posts: 18,115 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    trustnet gives tracking errors, at least one anyway:  See https://www.trustnet.com/factsheets/e/g1xc/vanguard-ftse-all-world-ucits-etf-gbp under "Find Managers".
  • eskbanker
    eskbanker Posts: 36,928 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Aidanmc said:
    Is tracking difference and tracking error same thing?

    There’s a good way of summarising the difference between tracking difference and tracking error. Think of two rally cars going head to head in a race. Car number one is the benchmark car, while car number two is your fund.

    To the onlookers observing the race and invested in the two drivers, tracking difference is the equivalent of the time difference captured when the cars cross the finish line.

    Tracking error, meanwhile, is the equivalent at examining the race footage back to see how close the two cars were to each other during the race itself. Perhaps there might have been a moment where the fund car handled a hairpin bend particularly badly, and had to recover from aggressive oversteer at the very edge of the track boundary. You get the picture.

    https://www.morningstar.co.uk/uk/news/224270/going-off-road-what-exactly-is-tracking-error.aspx
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.3K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.2K Spending & Discounts
  • 243.3K Work, Benefits & Business
  • 597.9K Mortgages, Homes & Bills
  • 176.6K Life & Family
  • 256.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.