Investing topic
Index Funds
Index funds aim to match the performance of a market index, such as a broad basket of large companies, rather than trying to beat it.
Why it matters
By accepting market returns at low cost, index funds changed how many people invest. Understanding what an index contains reveals the risks being taken.
What this topic covers
- How indexes are built
- Passive investing
- Cost advantages
- Market-cap weighting
- Global versus regional indexes
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This page is for informational purposes and does not constitute individualized financial advice.