A simplified version of an automated tracking system I developed at Bank of America to monitor, document, and resolve FINRA CAT 2E regulatory errors. This project showcases how I used Excel macros, ...

Price changes in ETFs such as U.S. Oil Fund don’t always closely track changes in the price of the commodity.

If this a long-term investment, then tracking difference is likely to be more important than tracking error as you try to compare funds.

Several things can contribute to tracking error, but the most likely culprit is optimizing.

Tracking difference has to be disclosed for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units. Tracking difference is capped for debt ETFs/Index funds to 1.25 %.