What are Index Funds?

Index funds are mutual funds or exchange-traded funds (ETFs) that aim to replicate the performance of a specific index, such as the S&P 500. They offer a simple and cost-effective way to invest in a diversified portfolio.

Benefits of Index Funds

• Low Fees: Typically have lower expense ratios.
• Passive Management: Less active trading means lower costs.

Investors should consider their long-term goals when choosing index funds as part of their investment strategy.