Of course, there will always be actively managed funds that outpace index funds over long periods. The problem in selecting actively managed funds is, naturally, identifying in advance those that will be consistently superior over time. As the number of index funds grows, investors can implement a wide range of distinctive investment strategies. 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.