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Investments glossary

Index Investing


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Chains are chains even if made of gold, they just tie you.

— Patrick Mahony

Index investing is a passive investment strategy that attempts to generate returns similar to a broad market index. Investors use this buy-and-hold strategy to replicate the performance of a specific index – generally an equity or fixed-income index – by purchasing the component securities of the index, or else an index mutual fund or exchange-traded funds (ETF) that itself closely tracks the underlying index.

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