Freefincal has introduced an ETF tracking error screener for August 2026, designed to help Indian investors assess how closely ETFs follow their benchmarks by analysing both NAV and market price over multiple time horizons.
Freefincal has released an August 2026 ETF tracking error screener aimed at helping investors judge how closely exchange-traded funds follow their benchmarks. The tool covers 76 ETFs across categories including Nifty 50, Sensex, Nifty Next 50, Nifty Bank, Nifty IT, Nifty Healthcare, Nifty Consumption and gold, and is delivered as an Excel file with three sheets.
The first two sheets compare ETF results against benchmark returns over 1, 2, 3, 4 and 5 years, using both net asset value, or NAV, and market price. That distinction matters because ETFs trade on an exchange like shares, so the market price can drift away from NAV even when the fund itself is tracking the index reasonably well. Fidelity and ETF.com both note that tracking difference shows the return gap versus the index, while tracking error measures how volatile that gap is over time.
Freefincal argues that many investors focus too narrowly on NAV-based numbers and miss the real-world effect of price-to-NAV slippage. The screener’s second sheet is designed to help users spot funds where the market price also stays close to the underlying value, while the third sheet, which compares NAV and price directly, is presented as an experimental addition. The publication says the most useful candidates are ETFs with consistently low tracking error and small return differences across all five horizons.
The screener is offered for Rs.200 for one month and, according to Freefincal, is intended for personal use only. The site says it includes no buy or sell recommendations and asks buyers to do their own research, while warning that it cannot guarantee monthly updates or perfect accuracy. Freefincal also says that investors should not search for a single “best” ETF, but instead look for broadly consistent performance and watch for recurring or slow-to-close price deviations, which it treats as red flags.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
