To create a similar portfolio on your own, you'd have to buy all
the securities in a particular index and hold them in the same proportion, or weighting, as they are included in the fund.
Not exact matches
All
indexes are governed by a strict set of rules that cover which
securities may be included
in a
particular index, how the
index is calculated, how it's maintained and updated, and how to fix any discrepancies.
The initial products were managed using a passive strategy — which is to say that they simple held the
securities that were included
in a
particular index.
Index funds attempt to track the performance of a particular stock or bond index, such as the S&P 500 ® Index or the Barclays U.S. Aggregate Bond Index, by holding most or all of the securities that are included in that i
Index funds attempt to track the performance of a
particular stock or bond
index, such as the S&P 500 ® Index or the Barclays U.S. Aggregate Bond Index, by holding most or all of the securities that are included in that i
index, such as the S&P 500 ®
Index or the Barclays U.S. Aggregate Bond Index, by holding most or all of the securities that are included in that i
Index or the Barclays U.S. Aggregate Bond
Index, by holding most or all of the securities that are included in that i
Index, by holding most or all of the
securities that are included
in that
indexindex.
If you'd like to try to achieve a performance similar to that of a
particular index, you can either directly copy the
index on your own (by buying all of the individual
securities in the
index) or purchase shares of a
index mutual fund or exchange - traded fund that essentially replicates the
index.
ETNs offer returns linked to the performance of a
particular market
index, but they represent no ownership interest
in a pool of
securities, pay no periodic coupon interest, and offer no principal protection.
Although you can't invest directly
in an unmanaged
index, you can invest
in an
index mutual fund that attempts to mirror a
particular index by investing
in the
securities that comprise the
index.