A smarter long-term
investment solution
The key to the effectiveness of the index approach is long-term thinking. Instead of trying to beat the market, this approach uses the average return of the market.
The index approach allows investments to grow with the world's leading companies (1600+) instead of risking potential failures. And its costs are pleasantly low.
Index approach versus self-selected stocks
managers outperform their respective market indices
Source: Morningstar Direct. Data on December 31, 2023
In the short term, your savings rise and fall with market fluctuations
By the time you retire, there will almost certainly be several more crises in the stock market. A smart investor, making a long-term investment, prepares himself to remain calm in times of crisis. This is the only way to successfully invest in the stock market.
In the long term, the world economy develops, financial markets continue to climb, and savings increase
Remember – INDEXO your savings are invested in more than 1,600 of the world’s largest companies in developed countries. These are real companies that employ thousands of people who go to work every day to create value for the global economy. As long as these companies continue to operate and grow, your savings will continue to grow. And you will bet on 1600 cards, not one.
Research show that index funds outperform traditional mutual funds year after year
That is why, since 2017, we have repeatedly invited the public to choose the approach that has shown reliably better results for decades around the world – passive asset management and investing in index funds. This approach does not rely on the wisdom of the managers, but invests in global markets and shows returns that correspond to the average result of global market indices before costs.
Traditional funds try to play the market - to guess which stocks or bonds will be the most profitable in the future
It is the so-called active asset management, which is the practice of most pension managers in Latvia. In the long term, this approach has not provided good results for 2nd pension pillar pension savers in Latvia.
Statistics show that almost no one succeeds in the long run
A large amount of research shows that the so-called active asset management not only fails to generate positive returns for investors, but actually reduces expected investment returns. “Players” waste money on trading commissions and fail to consistently guess which stocks are the “best” in the long run.
Index-linked funds invest automatically, across the market as a whole, without selecting individual stocks or bonds
For example, INDEXO’s clients own a small fraction of more than 1,600 of the largest companies in developed countries. This is a great way to reduce the risk of investment concentration. This approach does not rely on the wisdom of the managers, but invests in global markets and shows returns that correspond to the average result of global market indices before costs.
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