Why index funds beat stock picking for most people
Index funds are the simplest, most reliable building blocks for long-term portfolios. They offer diversification, low costs, and a disciplined way to stay invested through market cycles.
Diversification done right
One index fund can hold hundreds or thousands of companies. That means your portfolio is not relying on a single stock, sector, or market move to succeed.
Low fees matter over time
High fees slow the compounding of your portfolio. Index funds usually have much lower expense ratios than active strategies, so more of your returns stay invested.
Stay disciplined
Investing with index funds removes the temptation to chase the latest hot stock. It keeps your focus on broad market exposure and long-term results.
Next step for your portfolio
Use index funds as the base of your asset allocation, then compare your target mix against the expert strategy models on the next page.