Index Investing
Index Tracking
Definition
What is Index Tracking?
The process of building a portfolioThe complete collection of investments owned by an investor or managed under one mandate. intended to follow an index's return.
Example in practice
How This Looks in Practice
The fund uses full replicationHolding all index constituents in approximately their benchmark weights. for index tracking.
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Related Terms
Index Investing
Index
A statistical measure tracking the performance of a defined group of securities or assets.
Index InvestingMarket Index
An index designed to measure a market or market segment.
Index InvestingBroad-Market Index
An index covering a large portion of an investable market.
Factor InvestingFactor Investing
An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.