Tracking Error
How closely an index fund or ETF follows the index it aims to replicate. A small tracking error means the fund mirrors its benchmark well; a larger one means it drifts from it.
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Related terms
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ETFs vs Mutual Funds
Two ways to own a fund — and the practical differences that matter. How ETFs and mutual funds (including UK OEICs/unit trusts) differ in trading, pricing, minimums, tax efficiency, costs and transparency, and how to choose between them for your situation.
Expense Ratios & Fund Costs
The fee is the one thing you can control, and over decades it is enormous. What the expense ratio (OCF/TER) is, the brutal arithmetic of how a 1% fee compounds against you over 30 years, the hidden costs beyond the headline figure, and how to compare funds on what really matters.
Index Funds & Passive Investing
Arguably the most important idea in investing for ordinary people: owning the whole market cheaply instead of trying to beat it. What an index is, how index funds replicate it, why passive investing beats most active management after costs, and how regular investing turns it into a wealth-building habit.
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