Financial Education

In order to replicate an index, there are several generic approaches:

• Investing in an indexed portfolio
• Futures contracts on the index
• Swap positions on the index

The first category includes indexed mutual funds, exchange-traded funds and other accounts that attempt to mimic the underlying holdings in the index. The second two are most commonly used in conjunction with a cash portfolio.

For more information, see all articles on: Asset Allocation, Investing in Stocks, Investment Returns, Portfolio Management

See also:

Passive Equity Investing

The Role of Capital Market Expectations in Portfolio Management

The Efficient Market Hypothesis and Index Funds

Hedge Fund Benchmarks

Types of Traders