A mutual fund that generates a consistent and minimum return is part of thefixed-incomecategory. These mutual funds focus on investments that pay a set rate of return, such as government bonds, corporate bonds, and other debt instruments. The bonds should generate interest income that's passed ...
An index fund is a passively managed mutual fund that tracks an underlying index, such as the S&P 500 or Dow Jones Industrial Average. These funds tend to be very affordable because the manager is not doing any active research on which securities to buy or sell, but rather is simply follow...
A mutual fund that generates a consistent and minimum return is part of thefixed-incomecategory. These mutual funds focus on investments that pay a set rate of return, such as government bonds, corporate bonds, and other debt instruments. The bonds should generate interest income that's passed...
Index funds are a type of mutual fund or exchange-traded fund (ETF) that tracks the returns of an underlying benchmark index like the S&P 500, Nasdaq, or Dow Jones Industrial Average. For example, the Vanguard 500 Index Fund (VFINX) is an S&P 500 index fund. The fund seeks to produce...
This is a type of mutual fund that tracks the performance of a particular stock market index, such as the S&P 500 and the Dow Jones. The main aim of an Index Fund is to replicate the performance of the index. Sector Funds Sector Funds invest in specific sectors such as technology, ene...
For example, if you have a typical portfolio of individual stocks that includes 20 to 30 securities, this portfolio is not nearly as diversified as one mutual fund that tracks the S&P 500, which includes over 500 securities. In other words, a mutual fund allows an investor to diversify into...
It's a mutual fund that tracks a specific market index. The goal: mirror the index's holdings, activity, and return. They don't require a fund manager to actively select investments; instead, the vehicle buys a broad representation (or all) of the securities in an index. ...
ETFs are a type of exchange-traded investment product that must register with the Securities and Exchange Commission (SEC). ETFs offer a pooled investment in a fund that buys stocks and grants investors shares similar to a mutual fund. Most ETFs are passively managed meaning the fund tracks a...
Active management: Mutual funds can be either passively managed or actively managed. For investors who do not want to passively invest in an index fund or an ETF that tracks an index, active management is a way to get professional management, and potentially outperform an index, for a relative...
The cornerstone of many investor portfolios, "Spider" refers to Standard & Poor's Depository Receipts, or SPDR, which is an exchange-traded fund that tracks its underlying index, the S&P 500. Learn More Aggressive Growth Fund Aggressive growth funds invest in companies that have high growth pote...