Index funds are passively managed, meaning they aim to replicate the performance of a specific market index, such as the S&P 500, rather than trying to outperform it. Fund managers allocate assets ...

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.

Dimensional Fund Advisors' latest research adds to existing literature highlighting sometimes-overlooked downsides with the ...

Smaller potential returns: By definition, passive funds pretty much never beat their index, even during times of turmoil, as their core holdings are locked in to track the market. Only a small ...