Tracking error
0793-en RE430 Financial Market Law As of 11.07.2026
The tracking error expresses the deviation of the fund return from the development of a benchmark return (divergence error). The tracking error shows how actively the fund manager manages the fund and how closely he adheres to the benchmark. The tracking error shows the fluctuations in relative returns, the average deviation of the fund returns from the benchmark returns. The fluctuation relative returns is the result of assuming active risks (by selection and timing on the part of the fund management).
Deutsch
Tracking Error 0793-de
Der Tracking Error zeigt die Abweichung der Fondsrendite von der Entwicklung einer Benchmark (Abweichungsfehler). Der Tracking Error zeigt, wie aktiv und frei in Abweichung von der Benchmark der Fondsmanager den Fonds verwaltet. Der Tracking Error zeigt die Schwankungen der relativen Rendite, die durchschnittliche Abweichung der Fondsrendite von der Benchmark-Rendite. Die Schwankung der relativen Rendite ist das Resultat des Eingehens von aktiven Risiken (durch Selektion und Timing im Fund Management).
Suggested citation
Tracking error (0793-en), in: LAWPEDIA®-Glossar, provided by LAWCONSULT AG, www.lawconsult.ch/lawpedia/en/tracking-error, as of: 11.07.2026 [accessed on …].
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