# Core-Satellite Strategy

*Saving & Investing — Finicade finance glossary*

Core-satellite puts the bulk of a portfolio — the core — in cheap broad index funds, then adds small active or thematic positions as satellites. It's a structural compromise between the evidence favouring indexing and the human need to act on opinions. Its practical value is containment: it caps how much damage a conviction can do, provided the satellites stay small and are actually measured against the core they were meant to beat.

**Also known as:** core satellite, core and satellite investing

**Related terms:** [Index Fund](https://finicade.com/glossary/index-fund), [Active vs Passive Investing](https://finicade.com/glossary/active-vs-passive-investing), [Asset Allocation](https://finicade.com/glossary/asset-allocation), [Expense Ratio](https://finicade.com/glossary/expense-ratio), [Alpha](https://finicade.com/glossary/alpha)

Source: https://finicade.com/glossary/core-satellite-strategy