A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- BetaA measure of how much an investment tends to move compared with the overall market.
- BenchmarkA standard index used to compare how well your investments or a fund are performing.
- Actively Managed FundA fund where managers pick investments trying to beat the market, usually charging higher fees than index funds.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- Risk-Adjusted ReturnA way of measuring investment gains that accounts for how much risk was taken to achieve them.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
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Plain-English education — not personalized legal, tax, or investment advice.