![]() Index funds pay fewer dividends than actively managed mutual funds and they also have a low turnover rate. The best performing index funds generally don’t weigh you down with fees-otherwise, they wouldn’t have as many investors. Less of your investment goes toward fees and expenses when you invest in index funds. You’ll get real-time pricing every time you buy and sell. ![]() They also trade at a price that is updated throughout the day, just like stocks. ETFs can be the best of both worlds, in that they offer diversification and can be purchased on margin like stocks and you can short sell them, too. Though they’re not as liquid as stocks, which can be bought or sold at any time during the trading day, mutual funds are still some of the most liquid investment options available. Liquidity in this case simply means that you can buy or sell at the end of the trading day at the fund’s net asset value. The pros and cons of index funds should be carefully considered before you zip online and buy one. Invesco S&P 500® Equal Weight ETF (NYSEARCA: RSP).Vanguard Total Stock Market ETF (NYSEARCA: VTI).iShares Core S&P 500 ETF (NYSEARCA: IVV).
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