That means that the ETF buys a bundle of stocks that exactly copies what the index will do,[12] and it just sits on them. It doesn’t try to trade them to make extra returns; it doesn’t try to pick which stocks or which sectors will do better than others. It just tries to track its benchmark index, at the lowest possible cost.
AnnatarHeRich By Retirement_ How Singaporeans Can Invest Smart and -- Joshua Giersch -- 2021, 2021 -- 8068ad0e1e9da8234fd64ff6cafbf464 -- Anna’s Archive