Review:
Index Funds
overall review score: 4.5
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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