How index funds work, explained in plain English: what they are, how they track an index, how ETFs differ from mutual funds, and what you actually own when you buy one.
We counted 412 index funds that invest in stocks outside the U.S., holding about $2.2 trillion. The main types, what they really cost, the case for and against owning them, and how to choose one.
We counted 435 bond index funds holding about $2.8 trillion. What they hold, how interest rates and duration move their prices, the main types, and what they cost compared with stock index funds.
A step-by-step guide to buying your first index fund: getting ready, choosing the account and the broker, picking a fund without overpaying, placing the order, and automating the rest.
We read every Form N-CEN filed with the SEC over a full year and counted: 2,536 index funds, about a fifth of all funds but roughly half of the money, with three companies running most of it.
The mutual fund and the ETF version of an index fund can hold exactly the same stocks. What changes is how you buy them, the price you pay, share classes and taxes. Here’s which differences actually matter for the way you invest.
An index fund doesn’t try to beat the market: it buys the companies on a published list and keeps costs low. Here’s how that works, what it really costs, where the risks are, and five things to check before you buy one.
