So when I received my Valve Index, I immediately noticed the controllers were extremely laggy when compared to the Oculus Touch Controllers. I am disabling low latency updates on the motion controllers, as I didn’t think it was needed for my game, and I am doing alot of physics related stuff and 2 handed gripping which would conflict with that setting. However this was never an issue on the Oculus, the lag is really minimal on that. When on the Index for example, when I swing my hands, the motion controllers lag over 6 inches from where my hands are, which doesn’t seem right at all. What is going on here? It acts like a spring arm on a camera or something.
We have the same issue. It works fine in 4.20, but as we updated our game to 4.22 we get this lag.
Haven’t found a solution, just wanted to let you know that you are not alone 
It’s really annoying, and after searching around it looks like people have had this issue for some time now.
Its been fixed in 4.23 preview 4
I have a comparison here that I made for some people actually: Highlighting the SteamVR fix in UE4 4.23 preview 4 that Epic made - YouTube
I also had this issue with 4.22 - although if you use Steam VR Input plugin it doesn’t lag
That’s awesome! Thanks for the info!