Fundsters interested in the impact and origins of tracking error in passive mutual funds, especially exchange-traded funds, may want to look at Monday's "Fund Track" column in the Wall Street Journal. Sam Mamudi ponders tracking error by looking at the slightly different fates and styles of the iShares MSCI Emerging Markets Index ETF and the Vanguard Emerging Markets ETF, both of which track the MSCI Emerging Markets Index. (The Vanguard ETF costs less and "fully matches" the index of over 800 stocks and can trade shares with its non-ETF sibling, while the iShares ETF is "more selective" about its holdings.)

Several industry insiders weigh in on the subject. They include: Scott Burns, director of ETF analysis at Morningstar; Fran Kinniry, head of the investment strategy group at Vanguard; and Dina Ting, a portfolio manager at BlackRock's iShares. 

Edited by: Neil Anderson, Managing Editor


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