In this post, I am providing a complete list of Index Funds Tracking Error and Tracking Difference in Nov 2023. You will also find the data of AUM and Expense Ratio of both regular and direct funds.
This helps you to choose the Index Funds easily. Do remember that I am excluding the ETF and publishing only Index Funds.
It is a Google Sheet and you can’t download it. However, by scrolling, you can easily find all the data for Index Funds.
The tracking error is the annualized standard deviation of the difference in daily returns between the underlying equity index and the NAV of the ETF/ Index Fund based on past one-year rolling data. As per the recent SEBI regulation, such tracking errors must be within 2% levels.
The tracking difference is the annualized difference of daily returns between the index or goods and the NAV of the ETF/ Index Fund.
To know more, I have explained both concepts in detail and in a simple way in my earlier post “Tracking Difference Vs Tracking Error Of ETF And Index Funds“.
Ideally tracking error and tracking difference should be as low as possible. In case of tracking error, avoid the fund that outperformed the Index.
As I have mentioned above, this Google sheet contains data like Fund Name, current AUM, expense ratio, tracking error, and tracking difference for both regular and direct funds. Also, I have categorized them based on their market cap or theme.
Use the above sheet for shortlisting your Index Funds based on AUM, Expense Ratio, Tracking Error, and Tracking Difference. As I mentioned in my earlier posts, look for a fund with decent AUM, low expense ratio, and low tracking Error/Difference Fund.
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I tried to calculate the last 1 year returns difference between large-mid-250 TRI and edelweiss large-mid 250 direct fund NAV.
The data is as follows -
Date TRI Fund NAV
2022-11-07 12999.370 10.543
2023-11-06 14984.210 12.1002
And the returns come out to be 15.27% for the benchmark and 14.77% for the fund. that is -0.55% difference. How are you getting -2.84% difference? Is the data taken for some other dates? if yes, what dates?
Dear Sanket,
May I know whether you are talking about Tracking Error or Tracking Difference?
I am talking about tracking difference.
2022-11-7
benchmark - 12999.370 normalised to 10
fund NAV - 10.543 normalised to 10
2023-11-6
benchmark - 14984.210 normalised to 11.527
fund NAV - 12.1002 normalised to 11.477
so benchmark grew from 10 to 11.527 in last 1 year while fund NAV grew to 11.477. That is,
benchmark growth - 15.27%
fund nav growth - 14.77%
so difference of 0.5% in their growth. Amfi tracking diff data for Sep 2023 for this fund also shows close to this value, it shows -0.54% in last 1 year and -2.77% since inception.
Dear Sanket,
It is a last month data (approximately around last week). You can check out the NAV for that period and let me know if I am wrong, I am open to correct it.
I checked with below dates and got this data.
Date LM250 TRI EDW LM250 NAV
2022-10-28 12655.310 10.266
2023-10-27 14603.560 11.800
working in same way as shown above, the tracking difference comes to be -0.45%.
I do not know if you are wrong since i dont know which date data you took. But overall since my result and your result deviate significantly, i would suggest to recheck once. Thanks.
Dear Sanket,
Let me check the data. There must not be an error. But still I will check.
thanks. After verification, if you can share your data and calculations, like i have done, it will be really helpful.
Dear Sanket,
Sure.
There is no link to open the google sheet. Can you please provide the link ?
Dear User,
As I mentioned above, I just shared the sheet rather than sharing the link. If you are looking for the information, then this much is enough. By scrolling left or down, you can easily get the information you need.