Investors today want more than stocks and bonds. Mutual funds offer an alternative, but carry higher expense ratios and have high minimum investment requirements. Passive investing in index funds, such as the Vanguard Total Stock Market Index Fund, proves to be more profitable because of their lower fees and potential to increase over time. With more than 3,600 stocks across various sized segments, it’s easy to diversify your risk.
What are Vanguard Index Funds?
Vanguard index funds mimic a market. They may be comprised of securities from multiple companies in the same stock index or specific industries. They may mimic the S&P 500, bond market, or a combination of both.