The Actively Passive Trend: Indexes Get a Makeover
by Maria Crawford Scott
You would simply take your pick among a small number of index mutual funds that covered a small number of well-known indexes, and you would have a well-diversified, tax-efficient portfolio with rock-bottom expenses.
However, the immense popularity of index funds led to the creation of numerous new stock indexes, as well as the invention of a whole new type of index fund investing through the use of exchange-traded funds (ETFs)passively managed portfolios that track an index but trade on an exchange like an individual stock.
...To continue reading this article you must be registered with AAII.
Already registered with AAII? Login to read the rest of this article.
to read this article and receive access to future AAII.com articles.