Tracking error will be zero where an index fund is always able to perfectly replicate the underlying index.

Name: Tracking error will be zero where an index fund is always able to perfectly replicate the underlying index.
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Quizplus · Accepted Answer

Tracking error measures the deviation of a fund's returns from its benchmark index. If an index fund is able to perfectly replicate the underlying index, its returns will perfectly match the index and its tracking error will be zero.

Tracking Error Will Be Zero Where an Index Fund Is