Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Tracking difference definition

Tracking difference is a key metric in gauging the performance of exchange traded funds (ETFs), showing how a product has performed compared to its benchmark over a period of time.

Tracking difference is calculated as NAV total return vs benchmark total return: how much the value of the assets in an ETF have changed in price when compared to the group of assets they are supposed to track. It can be positive or negative, but typically will be slightly negative because ETFs which track indexes include fund expenses.

The measure of variability in an ETF’s tracking difference is called its tracking error.

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The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.

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