Market Indicators, Passive Management, and ETOs
Definition of 'Market Indicators'
A series of technical indicators used by traders to predict the direction of the major financial indexes. Most market indicators are created by analyzing the number of companies that have reached new highs relative to the number that created new lows, also known as market breadth.
What is active management?
Actively managed investment funds are, like their namesake, run by a professional fund manager or investment research team, who make all the investment decisions, like which companies to invest in or when to buy and sell different assets, on your behalf. They have extensive access to research in different markets, sectors and often meet with companies to analyze and assess their prospects before making a decision to invest.
The aim with active management is to deliver a return that is superior to the stock market that the companies sit within. An actively managed fund can offer you the potential for much higher returns than what a particular market is already providing.
It also means that you have somebody tactically managing your money, so when a particular sector looks like it might be on the up, or one region starts to suffer, the fund manager can move your money accordingly to expose you to this growth or shield you from potential losses.
How does this differ from passive management?
Passive investment funds will simply track a market, and charge far less in comparison. The funds are essentially run by computer and will buy all of the assets in a particular market, or the majority, to give you a return that reflects how the market is performing.
The Global Industry Classification Standard (GICS) is an industry taxonomy developed by MSCI and Standard & Poor's (S&P) for use by the global financial community. The GICS structure consists of 10 sectors, 24 industry groups, 68 industries and 154 sub-industries into which S&P has categorized all major public companies. The system is similar to ICB
A series of technical indicators used by traders to predict the direction of the major financial indexes. Most market indicators are created by analyzing the number of companies that have reached new highs relative to the number that created new lows, also known as market breadth.
What is active management?
Actively managed investment funds are, like their namesake, run by a professional fund manager or investment research team, who make all the investment decisions, like which companies to invest in or when to buy and sell different assets, on your behalf. They have extensive access to research in different markets, sectors and often meet with companies to analyze and assess their prospects before making a decision to invest.
The aim with active management is to deliver a return that is superior to the stock market that the companies sit within. An actively managed fund can offer you the potential for much higher returns than what a particular market is already providing.
It also means that you have somebody tactically managing your money, so when a particular sector looks like it might be on the up, or one region starts to suffer, the fund manager can move your money accordingly to expose you to this growth or shield you from potential losses.
How does this differ from passive management?
Passive investment funds will simply track a market, and charge far less in comparison. The funds are essentially run by computer and will buy all of the assets in a particular market, or the majority, to give you a return that reflects how the market is performing.
The Global Industry Classification Standard (GICS) is an industry taxonomy developed by MSCI and Standard & Poor's (S&P) for use by the global financial community. The GICS structure consists of 10 sectors, 24 industry groups, 68 industries and 154 sub-industries into which S&P has categorized all major public companies. The system is similar to ICB