How to invest in index funds?

By investing in several index funds tracking different indexes you can built a portfolio that matches your desired asset allocation. For example, you might put 60% of your money in stock index funds and 40% in bond index funds. You can start investing in index funds with one of the best online brokers and trading platforms, such as the ones below:

How do index funds work?

Index funds generally invest in all the components of the index they track and have fund managers whose job is to make sure that the index fund performs the same as the index. 1. Pick an index There are hundreds of indexes you can track using index funds.

What is index investing?

Index investing is a passive investment strategy that seeks to replicate the returns of a benchmark index. Indexing offers greater diversification, as well as lower expenses and fees, than actively managed strategies.