Should You Be an Index Investor?

Although index funds offer quite a few benefits, rock-bottom expenses are most significant.

(Image credit: xijian)

The advantages of index funds are hardly secret. It has become an annual ritual for data companies to release a tally of the relatively poor performance of actively managed funds during the previous calendar year. Last year’s casualties: Only 34% of actively managed funds that invest in large-company U.S. stocks managed to beat Standard & Poor’s 500-stock index, and just 28% of active funds that invest in small companies beat their benchmark, according to S&P Global.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.