In addition to the reasons mentioned above, the factors that affect the tracking error of index funds include cash balance, adjustment of constituent stocks, dividends of constituent stocks, various expenses and the experience and operation level of managers. First of all, how to weaken the influence of the adjustment of constituent stocks on the tracking error of index funds is an important aspect to test the comprehensive ability of fund managers. Qualified index fund managers will predict the future price changes and liquidity of transferred or transferred constituent stocks in advance, and make preparations for position adjustment in advance according to the actual situation.

Secondly, because domestic index funds mainly track the price index at present, the price index does not consider the impact of dividend reinvestment on the index. The dividend of constituent stocks in index funds and the reinvestment of dividend income will make the index funds deviate positively. Therefore, in general, index funds with large dividends are more deviated and easier to track.