Index Funds 101: The Boring Strategy That Works
It won't make headlines, but it's the strategy most long-term investors quietly rely on.
Index funds are designed to track a market index rather than trying to consistently outperform it through individual security selection.
Their main appeal is simplicity, diversification and relatively low costs compared with many actively managed strategies.
That does not make index investing risk-free. Markets can fall, and investors still need to consider their time horizon, diversification and ability to tolerate losses.