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core-satellite investment strategy
core-satellite investment strategy definition - finance
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.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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