Active and passive investing
There's two main investment strategies: active and passive.
An active investing strategy is one in which an investor chooses an investment or investments that the investor thinks is undervalued, with the aim of outperforming the market portfolio. An example of a fund that adopts the active investing strategy is the ARK Innovation ETF.
A passive investing strategy is one in which an investor buys an investment that makes-up or investments that make-up the market, with the aim of performing in-line with the market portfolio. An example of a fund that adopts the passive investing strategy is the Legal & General All Stocks Gilt Index Trust.
What's the difference between HY and IG credit?
HY and IG are two different credit ratings used by credit rating agencies to evaluate the creditworthiness of issuers of debt securities.
HY stands for "high yield" or "non-investment grade" and refers to debt securities issued by companies or entities with lower credit ratings. These securities have a higher risk of default and therefore offer higher yields to investors as compensation for the increased risk. HY credit ratings typically range from BB+ to C-.
IG stands for "investment grade" and refers to debt securities issued by companies or entities with higher credit ratings. These securities are considered to have a lower risk of default and therefore offer lower yields to investors. IG credit ratings typically range from AAA to BBB-.
In summary, the main difference between HY and IG credit is the creditworthiness of the issuer of the debt securities. HY securities are issued by companies or entities with lower credit ratings and have a higher risk of default, while IG securities are issued by companies or entities with higher credit ratings and have a lower risk of default.
Douglas Noël Adams
53,823,000,000 United States dollar
53,823,000,000 United States dollar
53,823,000,000 United States dollar
53,823,000,000 United States dollar
<iframe style="border: none;" src="https://query.wikidata.org/embed.html#%23Map%20of%20hospitals%0A%23added%202017-08%0A%23defaultView%3AMap%0ASELECT%20DISTINCT%20*%20WHERE%20%7B%0A%20%20%3Fitem%20wdt%3AP31%2Fwdt%3AP279*%20wd%3AQ16917%3B%0A%20%20%20%20%20%20%20%20wdt%3AP625%20%3Fgeo%20.%0A%7D" referrerpolicy="origin" sandbox="allow-scripts allow-same-origin allow-popups" width="1000" height="500"></iframe>
<iframe style="width: 80vw; height: 50vh; border: none;" src="https://query.wikidata.org/embed.html#%23Cats%0ASELECT%20%3Fitem%20%3FitemLabel%20%0AWHERE%20%0A%7B%0A%20%20%3Fitem%20wdt%3AP31%20wd%3AQ146.%20%23%20Must%20be%20of%20a%20cat%0A%20%20SERVICE%20wikibase%3Alabel%20%7B%20bd%3AserviceParam%20wikibase%3Alanguage%20%22%5BAUTO_LANGUAGE%5D%2Cen%22.%20%7D%20%23%20Helps%20get%20the%20label%20in%20your%20language%2C%20if%20not%2C%20then%20en%20language%0A%7D" referrerpolicy="origin" sandbox="allow-scripts allow-same-origin allow-popups" ></iframe>