Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Closet Indexing'
An investment strategy that is based on replicating an index with an actively managed portfolio. This strategy eliminates the risk of underperforming the index, but charges active management fees for an index fund return. Index funds charge substantially lower fees than actively managed funds.