Glossary entry (derived from question below)
Sep 22, 2003 19:07
20 yrs ago
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German term
indexnahe Anlagen
German to English
Bus/Financial
Investment / Securities
stock market
Das Protfoliobeta fuer indexnahe Anlagen wurde von 1.1 auf 1.0 zurueckgenommen.
Proposed translations
(English)
5 +1 | index-tracking investments |
Ralf Lemster
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Proposed translations
+1
1 hr
Selected
index-tracking investments
The difference between "index-linked" and "index-tracking" is that "index-linked" instruments (usually bonds from a legal perspective) are firmly tied to a specific index. It would be highly unusual to change the beta of an index-linked investment - in contrast, index-tracking investments do not always perfectly match the performance of the index. A 1.1 beta means that the portfolio had a higher sensitivity than the benchmark index - presumably a slight overweight of high-beta issues in the index, to benefit from a rising market.
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