What is the meaning of Tracking error?

In an indexing strategy, the standard deviation of the difference between the performance of the benchmark and the replicating portfolio.

Barry Goldsmith
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APABarry Goldsmith. (2010). tracking error. Retrieved September 25, 2026, from http://smartdefine.org/tracking_error/definitions/1165399
ChicagoBarry Goldsmith. 2010. "tracking error" http://smartdefine.org/tracking_error/definitions/1165399 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, tracking error, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/tracking_error/definitions/1165399>.
MLABarry Goldsmith. "tracking error" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/tracking_error/definitions/1165399>