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Review:

Index Funds

overall review score: 4.5
score is between 0 and 5
Index funds are a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a market index, such as the S&P 500.

Key Features

  • Diversification
  • Low fees
  • Passive investing
  • Market index tracking

Pros

  • Lower management fees compared to actively managed funds
  • Provides broad market exposure through diversification
  • Easy way for novice investors to start investing

Cons

  • Lack of flexibility in portfolio management
  • Limited potential for outperforming the market

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Last updated: Sun, Feb 2, 2025, 11:06:45 AM UTC