Free Version

Review Topics
Practice Exams
Do a little prep work before the exam. Know your opponent's weaknesses. You don't want to go into a game of "smashing heads" empty-headed.

Mutual Funds vs. Index Funds

The biggest issue facing mutual funds is not the competition of other mutual funds – it is the increasing popularity of index funds. Index funds are passively managed, which means that they track an index, like the S&P 500. So, an index fund that tracks the S&P 500 would buy the companies that make up the S&P 500, in the same proportion, and sell shares based on that investment. Simple, cheap and what’s more, their returns tend to outperform actively-managed funds over a longer time horizon. ...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

Next: Fees, Fie, NAV & Fun(ds)
Prev: Mutual Fun(ds)

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.