Term of the Day: Index Investing

TERM OF THE DAY - OCTOBER 26, 2011 Add Investopedia to Safe Sender List Find Investopedia on Index Investing What Does it Mean? A form of passive investing that aims to generate the same rate of return as an underlying market index. Investors that use index investing seek to replicate the performance of a specific index – generally an equity or fixed-income index – by investing in an investment vehicle such as index funds or exchange-traded funds that closely track the performance of these indexes. Investopedia Says... Proponents of index investing eschew active investment management because they believe that it is impossible to "beat the market" once trading costs and taxes are taken... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - 10 Reasons To Add ETFs To Your Portfolio We provide 10 reasons why adding ETFs to your portfolio can trump securities-only portfolio management strategies.  View the Slideshow » Special Feature - Exchange-Traded Funds (ETFs) This vehicle combines the diversification of a mutual fund with the flexibility of a stock. Learn more about them here. Click here for more. Related Terms Active Management Closet Indexing Exchange-Traded Fund - ETF Index Fund Indexing See More » Related Links Index Investing: Introduction Enhanced Index Funds: Can They Deliver Low-Risk Returns? The Lowdown On Index Funds See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.