Yes that is
a huge tracking error, * in your favor *.
Many of the stocks are extremely small and illiquid, so any fund or ETF that tried to replicate the index would suffer from
huge tracking error.
Not exact matches
This may not be a
huge deal just yet but eventually, there is bound to be
tracking error from the underlying index that most investors are likely unaware of.
The
tracking error is
huge, these portfolios require 3 - 5 + horizons, and the names are vomit - inducing, but you have a great shot at outperformance over the long - haul.