What is Index Fund?
An index fund is a fund, either an ETF or a mutual fund, built to track a specific index instead of trying to beat it. Its goal is simply to match the index's holdings and roughly its performance, which tends to keep fees low. Because it follows the whole basket, an index fund spreads your money across every company in that index.
Why Index Fund matters
Index funds are a low-cost, hands-off way to own a broad slice of the market in one holding.
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