Gallery. 1  Hand-cranked planetary sharpener, with cover in place. 2  Hand-cranked planetary sharpener from 1950â60, with cover removed. 3  Hand-cranked planetary sharpener with spring-driven pencil holder. 4  AC-powered electric pencil sharpener. 5  Battery-operated sharpener.
Description. Tracking Error is a measure of how closely an ETF follows its benchmark index. This data point seeks to isolate the ability of the portfolio managers to track the index, ignoring the confounding effects of ETF liquidity on market prices.escription. Tracking Error is a measure of how closely an ETF follows its benchmark index. This data point seeks to isolate the ability of the portfolio managers to track the index, ignoring the confounding effects of ETF liquidity on market prices.
The Bottom Line By doing the simple homework suggested above, you can make sure that an ETF index fund tracks its target index as advertised, and you will stand a good chance of avoiding a tracking error that might adversely affect your returns in the future.lthough rarely considered by the average investor, tracking errors can have an unexpected material effect on an investor's returns. It is important to investigate this aspect of any ETF index fund before investing.