An "Index Fund" is a type of mutual fund or exchange-traded fund (ETF) designed to track and replicate the performance of a specific market index. Instead of relying on active management where fund managers pick and choose individual stocks or bonds, index funds aim to mirror the composition of an established index, such as the S&P 500 or the Nasdaq Composite.
An "Index Fund" is a type of mutual fund or exchange-traded fund (ETF) designed to track and replicate the performance of a specific market index. Instead of relying on active management where fund managers pick and choose individual stocks or bonds, index funds aim to mirror the composition of an established index, such as the S&P 500 or the Nasdaq Composite.
For investors, index funds offer several advantages. Firstly, they provide broad market exposure, ensuring diversification across a wide range of assets, which can reduce individual stock-specific risks.
Secondly, because they are passively managed, index funds typically have lower expense ratios compared to actively managed funds.
An "Index Fund" is a type of mutual fund or exchange-traded fund (ETF) designed to track and replicate the performance of a specific market index. Instead of relying on active management where fund managers pick and choose individual stocks or bonds, index funds aim to mirror the composition of an established index, such as the S&P 500 or the Nasdaq Composite.
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