Bond Indexing
                
             

Historically, a strong case can also be made for indexed bond investments. The unmanaged Citigroup World Government Bond Index, for example, represents the entire globe.

This index can be tracked in its entirety, or an index fund can follow specific maturity sectors, such as short-term, intermediate-term, or long-term.

Conclusion
Indexing provides an efficient way for investors to participate in broadly diversified portfolios. Indexing is a time-tested strategy and has been shown to outperform the vast majority of active (stockpicking) portfolios.