Index funds:
Index funds are a popular option for long-term investors seeking exposure to a broad range of stocks or bonds. These funds track a market index, such as the S&P 500, and are typically low-cost and tax-efficient.
An index fund in the USA is a type of investment fund that aims to replicate the performance of a specific stock market index, such as the S&P 500 or the Dow Jones Industrial Average. An index fund typically holds a portfolio of stocks that closely mirror the holdings and weighting of the index it is tracking.
Index funds are passive investments, which means that they do not rely on active management by a portfolio manager or analyst. Instead, they are designed to provide broad market exposure and low-cost investing for individual investors. Index funds are typically available as exchange-traded funds (ETFs) or mutual funds.
One of the main advantages of investing in index funds is that they offer broad
