Indexing is an investment strategy that involves creating a portfolio that replicates the performance of a specific market index. This means that instead of investing in individual stocks or actively managed funds, an index investor buys a basket of stocks that tracks the performance of a particular index. The goal of indexing is to match the returns of the underlying index, rather than trying to beat it.
Indexing is an investment strategy that involves creating a portfolio that replicates the performance of a specific market index. This means that instead of investing in individual stocks or actively managed funds, an index investor buys a basket of stocks that tracks the performance of a particular index. The goal of indexing is to match the returns of the underlying index, rather than trying to beat it.