WSJ: What Is ‘Tracking Error’ in Oil Funds?

By SIMON CONSTABLE

Fund investors wanting to bet on a rebound in the oil market need to watch out for something called “tracking error.”
The issue is simple: Do the price changes in the fund you purchase closely track the changes in the commodity you are betting on? In the case of oil, those two things aren’t in sync, at least for two of the biggest exchange-traded products that offer exposure to the oil market. Read more here.