Investing strategy where an investor or investment manager tries to achieve a performance level reminiscent of a market index or average without actually purchasing the same securities that comprise the market index or average. In order to do so, an investor or investment manager may mimic an index's weights of stocks in each given industry or sector. Closet indexing is more difficult than passively investing in an index fund, and can be subject to more fees while providing approximately the same level of return as a typical index fund.
Related information about closet indexing:
- Closet Indexing Definition | Investopedia
A portfolio strategy used by some portfolio managers to achieve returns similar to those of their benchmark index, without exactly replicating the index.
- Closet Indexing - Financial Dictionary - The Free Dictionary
A mutual fund that is actively managed in theory, but more or less tracks a benchmark stock index. Closet index funds generally exist because their managers ...
- How To Spot A Closet Index Fund - Businessweek
Sep 5, 2004 ... This closet indexing problem comes from the way the investment management industry works. Investors, both large and small, don't usually pull ...
- Stock market correlation leads to 'closet' indexing - InvestmentNews
Sep 30, 2012 ... Maybe American Funds Growth Fund of America should be renamed American Funds Index Fund of America. The $115 billion fund, the largest ...
- Of Closet Indexing And Stock Picking - Seeking Alpha
Of Closet Indexing And Stock Picking. October 26, 2012 by: Roger Nusbaum | includes: SPY, XLF. Gary Kaminsky had an interesting "op-ed" that was very op, ...
- Yale study reveals the scale of closet indexing
Oct 11, 2010 ... US research suggests that almost 80% of asset managers globally do not follow an active investment strategy.
- What is closet indexing? definition and meaning
Definition of closet indexing: Investing strategy where an investor or investment ... Closet indexing is more difficult than passively investing in an index fund, and ...
- A case study in closet indexing
Oct 3, 2012 ... Let's get our hands dirty today with some real analysis. At random, I picked a US large cap fund run by one of the major mutual fund families ...