Home  |  Personal Finance Investing  | 

Understanding Stock Indexes

What is an index fund?

To properly view this site, javascript must be enabled and Flash version 9 or higher must be installed.
Get the latest Flash player
David John Marotta
President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.
http://www.emarotta.com  
434-244-0000

David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com

What is an index fund?

 

This expert: 183,239 views

This series: 17,005 views

Download to Mobile Device
Tags:

Money

,

Financial

,

Planning

,

Investment

Comments:

0 (Read Comments) (Add Comment)

Print

Transcripts

Host: What is an Index Fund?

David Marotta: An Index Fund is an investment fund that tries to follow an Index. So for example an Index Fund might be an S&P 500 fund, it's trying to follow the S&P 500 fund index as much as possible. Because they are not making decisions about which stocks are better and which stocks are not, they just want to follow the index, it's has much lower expense ratios. You dont have to pay analysts because the index doesnt change very frequently, you dont have to buy and sell stocks as frequently. So, the index sort of moves -- the fund moves in sync with the index with very low expenses to the investor.

Other Videos

  • How to Buy Life Insurance

    How to Buy Life Insurance

    In this video, Bob Ley from insurance company AIG discusses the many issues surrounding how to select and purchase life insurance.
  • What are the best resources for dealing with identity theft?

    What are the best resources for dealing with identity ...

    In this video, Linda Sherry details the best ways to prevent identity theft and what you can do if you think your identity has been stolen.
  • How to Price a Home

    How to Price a Home

    This video provides tips from experienced realtors and mortgage brokers on how to sell a home, buy a home, price a home and select an agent. Get the best deal you possibly can when either buying or selling your home!
  • What are the first steps to take in starting a business?

    What are the first steps to take in starting a ...

  • Why do all stock prices tend to move in the same direction?

    Why do all stock prices tend to move in the same ...

  • What is debt?

    What is debt?

    In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.