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IndexFunds

A type of mutual fund or ETF designed to track the performance of a market index. Known for low costs, broad diversification, and historically outperforming most actively managed funds.

The True Cost of Fees

$10,000
30 years
0.03%
1.00%
Index Fund Final Value

$173,072

Active Fund Final Value

$132,677

Index Fund Advantage

+$40,395

Index FundActive FundFees: $1,422Fees: $41,817$173,072$132,677

Over 30 years, the lower-fee index fund saves you $40,395 in fees alone.

Popular Index Funds

Total Stock Market

VTI, FSKAX, SWTSX

Entire U.S. stock market exposure. Over 3,000+ stocks in one fund.

Expense Ratio

0.03-0.04%

S&P 500 Index

VOO, FXAIX, SWPPX

Tracks the 500 largest U.S. companies. The benchmark for U.S. large-cap.

Expense Ratio

0.03-0.04%

Total International

VXUS, FZILX, SWISX

Developed and emerging markets outside the U.S. Geographic diversification.

Expense Ratio

0.07-0.11%

Why Index Funds Win

90%+

Active Funds Underperform

Over 15+ year periods, more than 90% of actively managed funds fail to beat their benchmark index after fees.

0.03%

Ultra-Low Costs

Top index funds charge as little as $3 per $10,000 invested annually. Active funds average 1% or more.

100%

Tax Efficiency

Index funds rarely sell holdings, generating fewer taxable events compared to actively traded funds.

Simple

No Manager Risk

No worrying about star managers leaving or making bad calls. The index is the strategy.