Was ist Tracking Error?
Tracking Error A measure of the divergence between the performance of a portfolio and its benchmark, calculated as the standard deviation of the difference in returns over time; key metric in active and passive fund management.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Tracking Error” Used in Practice?
Ein niedriger Tracking Error zeigt, dass die Rendite eines Fonds eng an seine Benchmark gekoppelt ist – besonders wichtig für passive Indexfonds.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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Was ist Tracking Error?
A measure of the divergence between the performance of a portfolio and its benchmark, calculated as the standard deviation of the difference in returns over time; key metric in active and passive fund management.
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