Here's a look at some of the indexes that an investor can track. It provides a solid foundation for investing in U.S. stocks. Index is the most widely accepted benchmark. Although most of our discussion has been about equity indexing, a strong case can be made for indexed bond investments. As noted earlier, indexing is a long-term strategy.
Indexing is a strategy that has been applied to many different categories of investing.
It provides an efficient way for investors to participate in broadly diversified portfolios. Nonetheless, many investors will continue to be attracted to the distinctive investment philosophies and strategies offered by the wide range of actively managed funds. Around that core investment, an investor may select specific actively managed funds that appear likely, in the investor's judgment, to add incremental investment performance over the long run. Return to top Conclusion Indexing is a time-tested strategy with a variety of applications. And, as the concept becomes more broadly understood by individual investors, an even wider array of index mutual funds will undoubtedly be available to allow for investments in this efficient, diversified manner.