Glossary

Tracking difference

The gap between a fund's return and its index's return over a period, usually a year. It shows the real cost of tracking.

Comparison Yearly costs of 0.2% versus 1.5% over 30 years. Costs 0.2% 10,000 at 6% for 30 years ≈ 54,300 Costs 1.5% 10,000 at 6% for 30 years ≈ 37,500

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