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3 Reasons to Invest in Index Funds (and 1 Reason Not to)

3 Reasons to Invest in Index Funds (and 1 Reason Not to)

An index fund is a type of mutual fund or exchange-traded fund (ETF) that is put together to mirror a specific market index. For example, the S&P 500, which is likely the most famous index, consists of the 500 largest American companies by market cap. An S&P 500 index fund consists of and tracks those 500 companies.