What is an index fund and which have been the best performing?
An index fund tracks the performance of the components in an underlying market index or benchmark and only includes stocks or assets that meet certain criteria. Index funds can include mutual funds and index ETFs (exchange-traded funds). Some think of an index fund as an investment vehicle that is professionally managed.
If you’re interested in investing in index funds, it doesn’t need to be complicated. This article will explain what index funds are and how to choose one from the thousands on offer. It will also discuss the best-performing index funds in terms of share price increase, low-cost funds and how to handle stock market dividends and taxes when owning these types of funds.