Vanguard ventured into uncharted waters when we released the initial index fund for person investors in 1976. Index money turned the tide for person investors trying to find wide marketplace exposure and minimal prices. And they are continue to making waves.
Index money vs. active money
An index fund is an ETF (exchange-traded fund) or mutual fund that tracks a benchmark—a normal or measure that displays a certain asset course. The fund is intended to act just like the benchmark it tracks, and for this reason, index money are passive money. If a fund’s benchmark goes up or down in worth, the fund follows fit.
An active fund is an ETF or mutual fund that’s actively managed by a fund advisor who chooses the fundamental securities that comprise the fund with the goal of outperforming a certain benchmark. If a fund advisor picks the right blend of securities, the fund