Core-satellite-investment-strategy meaning

An asset allocation program utilized by an exchange-traded fund (ETF) that uses a broad index fund (the core) and sector funds (the satellites) in order to enhance overall portfolio performance or provide diversification while controlling risks. A core-satellite investment strategy also may be a simplified ETF-oriented risk budgeting program that uses active equity funds to add alpha, the estimate of the amount of return expected from an investment.
0
0
Advertisement