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Personal Finance > Mutual Funds How to choose an index fund: 1 of 4

Index funds, low-cost mutual funds designed specifically to track an underlying index, are extremely useful products for retail and institutional investors. This article will explain the advantages of index funds, and how a smart investor selects among mutual funds. What is an Index Fund? An index fund is a type of mutual fund (or exchange-traded fund, ETF) that tracks an underlying financial index. The most commonly-tracked indices are such well-known names as the Dow Jones Industrial Average, the S&P 500 and the Nasdaq. Other index funds track less well-known indices as the Wilshire ...
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