The indexing trend is likely to accelerate as Barclays Global Investors, the largest institutional index manager in the world, brings to market 36 new index-based exchange funds over the next two months. Indexing isn't sexy and doesn't offer the excitement of investing in individual stocks. That is why this is important and why you, as an investor, should care. Other institutional managers are watching Barclays closely and are likely to jump on board with their own products. But maybe this is the new 'new thing' in funds.
New funds offer many advantages Maybe.
Whereas traditional funds are priced at the end of the trading day, exchange-traded funds are priced constantly throughout the day. Strong reasons for indexing Thanks to John Bogle, founder and former chairman of the Vanguard Group family of funds, educated investors know the advantages of indexing. It is perfectly OK to explore the hot funds on the periphery once you have this core position. The exchange-traded funds deliver expenses in the same low range as the Vanguard funds. You must pay a brokerage commission to buy one, though.