I don't know why
the observed tracking error is twice as much.
Not exact matches
Given the
observed large and often quick currency changes it's worth the management fees and the
tracking error those funds entail.
This pattern of the currency - neutral fund exhibiting significant
tracking error can also be
observed in the TD e-Series index funds.
The authors
observe, however, that due to large
tracking errors the t - stats of the differences in excess return are not statistically significant.
When modelers show what criteria each of their models are designed to forecast over what timescales, and within what margin of
error, AND their models have shown a
track record of reasonably accurately matching
observed conditions; then I will believe the model that has demonstrated such performance is worthy of consideration for formation of government policy.
Moreover, we have
observing systems in place that nominally can measure the major storage and flux terms, but due to
errors and uncertainty it remains a challenge to
track anomalies with confidence.