Index funds, on the other hand, are passively managed, meaning their composition is pegged to that of a target stock index with the aim of matching the returns of that index. While active ...

Index funds are passively managed, meaning they aim to replicate the performance of a specific market index, such as the S&P 500, rather than trying to outperform it. Fund managers allocate assets ...

Index funds automate investing by tracking market indexes like the S&P 500, saving on fees. Choose index funds with low expense ratios and strong track records to match your chosen index.