Basic Investing

What is an Index Fund?


Investing Basics 101

An index fund is a financial instrument that provides exceptional diversity at low cost. It is traded like a stock, except when you buy a stock you purchase shares in one company. When you buy an index fund, you buy all the companies in the index it tracks, all at once, in one simple transaction and your financial returns replicate closely those of the market the index tracks. Index funds don’t try to beat the market – they try to be the market by mirroring the index as a whole.

Based on research from Paul Samuelson at MIT and others, index funds were introduced to the public by John Bogle, the founder of Vanguard, who wrote his senior thesis at Princeton in 1951 on index funds.


Low-fee Index Funds

Index funds are simple to understand, have low fees, and often have a smaller tax burden compared to many mutual funds. Lower costs contribute to long-term wealth. By focusing on what is controllable, costs and asset allocation, One Day In July financial advisors aim to generate excellent returns while managing risk.



“Don't look for the needle in the haystack. Just buy the haystack.”
~ John Bogle


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Investing for Retirement: 401k and More
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Environmental Investing: How it Differs from ESG
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INVESTING THOUGHTS
Should I Try to Time the Stock Market?
Mutual Funds vs. ETFs
Inflation
The Cycle of Investor Emotion
Countering Arguments Against Index Funds
Annuities - Why We Don't Sell Them
Aim for Average
How Finacial Firms Bill
Low Investment Fees
Understanding Fixed Income: Interest Rate Risk
Investing in a Bear Market
Investing in Gold
Is Your Investment Advisor Worth One Percent?
Active vs. Passive Investment Management
Investment Risk vs. Investment Return
Who Supports Index Funds?
Articles by Dan Cunningham
Does Stock Picking Work?
The Growth and Importance of Female Investors
Behavioral Economics

Shelburne, VT Financial Advisor

Frank Koster | Josh Kruk

145 Pine Haven Shores Road, Suite 2212

Shelburne, VT 05482

(802) 777-9768

Stowe, VT Finanical Advisor

Available for meetings in Stowe.

Peter Egolf

(802) 999-2321

Burlington, VT Financial Advisor

Hans Smith | Katie Bensel

Nancy Westbrook | Peter Egolf

Adam Roof

77 College Street #3A

Burlington, VT 05401

(802) 503-8280

Essex, CT Office

Keith McCarthy

5 Essex Square, Suite 3A

Essex, CT 06426

(860) 581-7011

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Available for meetings in Rochester, VT and surrounding area.

Carrie McDonnell

(802) 767-7665


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