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A fund that copies a market index like the S&P 500. Low fees, easy investing.
Why It Matters
Index funds are the closest thing to a cheat code in investing. They beat 90% of professional fund managers over 15+ years. Why? Because they just buy and hold everything in an index, avoiding the fees and mistakes that come with trying to pick winners.
Key Points
- Index funds and ETFs are very similar - the main difference is how you buy them
- You're not trying to beat the market, you ARE the market
- Vanguard invented the first index fund in 1976 - it was called "un-American" at the time
Related Terms
Common Questions
A fund that copies a market index like the S&P 500. Low fees, easy investing. Index funds are the closest thing to a cheat code in investing. They beat 90% of professional fund managers over 15+ years.
Index funds are the closest thing to a cheat code in investing. They beat 90% of professional fund managers over 15+ years. Why? Because they just buy and hold everything in an index, avoiding the fees and mistakes that come with trying to pick winners.
Index funds and ETFs are very similar - the main difference is how you buy them
You're not trying to beat the market, you ARE the market
Vanguard invented the first index fund in 1976 - it was called "un-American" at the time