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Financial glossary


Tracking error

The Tracking Error (TE) is a measure of dispersion of relative performance of the fund compared to the benchmark. It measures whether the fund has moved closely to the market (low TE) or on the opposite whether it has behaved differently from the market (high TE).

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management Holding.