29th June 2011

BlackRock: Index Funds

Index (or passive) investing is nothing new, yet it's true to say that the debate about whether to go active or passive is more than ever in the spotlight.
At BlackRock®, we believe there is no contradiction between offering both index and active products. Moreover, both investment strategies can be complementary to each other and are frequently used side by side by investors.

In essence, index tracking investments are designed to provide investors with market exposure (also known as beta), yet the scale, resources and indeed skill applied to passive investments can make a marginal difference to the outcome.
Since index funds first became available to investors almost 40 years ago, indexation has moved beyond its original role as a means of achieving investment results that keep pace with market averages. Today, it serves as a valuable tool in managing the risks associated with uncertain investment performance. For many, indexation is a crucial lower-cost, low-maintenance approach to managing a proportion of, or indeed their entire, investment portfolio.

A wide range of investors, including pension funds, wealth managers and retail investors use index tracking to consistently deliver a compelling set of benefits.

To view the index solutions brochure click here

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