Index Investing Definition
Learn the definition of index investing and other ETF terminology from the etf.com glossary.
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Index Investing in ETFs represents a passive strategy focused on tracking a specific market index. These ETFs aim to replicate the performance of the benchmark index, offering investors diversification, transparency and often lower fees compared to actively managed funds. The appeal of index investing lies in its straightforward approach, aligning with a ""set it and forget it"" approach. By mirroring the composition and returns of an index, these ETFs provide investors with a systematic and disciplined means of gaining exposure to various market segments, making index investing a popular choice for those seeking broad market representation within the realm of exchange-traded funds.
