Many mutual funds (and some ETFs) are actively managed, meaning their fund managers use research and analysis to pick stocks and time trades with the goal of “beating the market” or producing ...

For example, Charles Schwab offers a S&P 500 index fund as a straightforward option with no investment minimum. Its expense ratio is 0.02%, meaning every $10,000 invested costs $2 annually.

In either case, both investors could gain broad exposure to all the stocks they want with the purchase of a single index fund. Index funds are passively managed, meaning they aim to replicate the ...

They are often passive, meaning they track an investment index. » Learn more about ETFs What is an index fund? An index fund is a type of mutual fund whose holdings match or track a particular ...