In today's special WSJ section, "Investing in Funds a Monthly Analysis", Leslie Scism and Ian Salisbury talk ETF tracking error with ETF expert Paul Mazzilli, head of Morgan Stanley's ETF-research group. Mazzilli says that the instance of high tracking errors increased in 2007, especially for ETFs that track newer and less well known benchmarks. Also, well established ETF firms such as Vanguard, SSgA and BGI saw lower tracking errors than newer ETF firms.  

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