The index fix?

摘要

Indices fuel the global investment industry, providing a critical measure of market activity and investment performance. But do we really understand how they are created, or indeed whether they should be trusted? Few investment tools have had such implicit, long-lasting trust heaped upon them as the humble, well-worn index. Forming part of the fund management architectural design process, indices serve as a vital instrument with which to measure performance, select stocks and build portfolios, and with which to model active investment strategies.