Editing Index fund (section)

{{Short description|Fund representing a specific index}}

An '''index fund''' (also '''index tracker''') is a [[mutual fund]] or [[exchange-traded fund]] (ETF) designed to follow certain preset rules so that it can replicate the performance of a specified basket of underlying investments.<ref name="ssrn.com">{{Cite web |title=Reasonable Investor(s) | ssrn=2579510 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2579510 |access-date=2024-02-08}}</ref> 

The main advantage of index funds for investors is they do not require much time to manage{{Em dash}}the investors will not need to spend time [[stock valuation|analyzing]] various [[stock]]s or [[investment management|stock portfolios]]. Most investors also find it difficult to beat the performance of the [[S&P 500]] index;<ref>{{Cite web|title=Can Anybody Beat the Market?|url=https://www.investopedia.com/ask/answers/12/beating-the-market.asp|access-date=2022-01-03|website=Investopedia}}</ref> 
indeed passively managed funds, such as index funds, consistently outperform actively managed funds.<ref>{{Cite news |date=2022-12-02 |title=Mutual Funds That Consistently Beat the Market? Not One of 2,132. |work=The New York Times |url=https://www.nytimes.com/2022/12/02/business/stock-market-index-funds.html |access-date=2023-08-21}}</ref><ref name=":12">{{Cite journal |last=Choi |first=James J. |date=2022 |title=Popular Personal Financial Advice versus the Professors |journal=Journal of Economic Perspectives |volume=36 |issue=4 |pages=167–192 |doi=10.1257/jep.36.4.167 |issn=0895-3309 |doi-access=free}}</ref><ref>{{Cite journal |last=Malkiel |first=Burton G. |date=2013 |title=Asset Management Fees and the Growth of Finance |journal=Journal of Economic Perspectives |volume=27 |issue=2 |pages=97–108 |doi=10.1257/jep.27.2.97 |issn=0895-3309|doi-access=free }}</ref>
Thus investors, academicians, and authors such as [[Warren Buffett]], [[John C. Bogle]], [[John J. Brennan (businessman)|Jack Brennan]], [[Paul Samuelson]], [[Burton Malkiel]], [[David Swensen]], [[Benjamin Graham]], [[Gene Fama]], [[William J. Bernstein]], and [[Andrew Tobias]] have long been strong proponents of index funds.<ref name="Investors_info">
* {{Cite web |last=Pisani |first=Bob |date=2022-10-03 |title=Billionaire Warren Buffett swears by this inexpensive investing strategy that anyone can try |url=https://www.cnbc.com/2022/10/03/billionaire-warren-buffett-swears-by-this-inexpensive-investing-strategy-that-anyone-can-try.html |access-date=2024-02-08 |website=CNBC}}
* {{Cite news |last=Krishnan |first=Aarati |date=2022-08-07 |title=Why Buffett bats for index funds |url=https://www.thehindu.com/business/markets/why-buffett-bats-forindex-funds/article65738479.ece |access-date=2024-02-08 |work=The Hindu |issn=0971-751X}}
* {{Cite news |last=Martin |first=Emmie |date=2018-01-03 |title=Warren Buffett just won a $1 million bet—and highlighted one of the best ways to grow wealth |url=https://www.cnbc.com/2018/01/03/why-warren-buffett-says-index-funds-are-the-best-investment.html |access-date=2024-02-08 |work=[[CNBC]]}}
* {{Cite web |title=Warren Buffett on Index Funds |url=https://www.nasdaq.com/articles/warren-buffett-index-funds-2017-06-25 |access-date=2024-02-08}}
* {{Cite news |first=Stan |last=Choe |date=2019-01-23 |title=40 years after his "folly," Bogle's index funds reign |url=https://apnews.com/article/171a636f31b24167ae3c81cb77bcf695 |access-date=2024-02-08 |work=[[AP News]]}}
* {{Cite web |title=John Bogle's Advice: Live Long and Prosper, on Index Funds |url=https://knowledge.wharton.upenn.edu/article/john-c-bogles-advice-live-long-and-prosper-on-index-funds/ |access-date=2024-02-08 |website=Knowledge at Wharton}}
* Siegel, J.J. (2019). Climbing Mount Everest: Paul Samuelson on Financial Theory and Practice. In: Cord, R., Anderson, R., Barnett, W. (eds) Paul Samuelson. Remaking Economics: Eminent Post-War Economists. Palgrave Macmillan, London. {{doi|10.1057/978-1-137-56812-0_13}} 
* {{Cite web |title=Financial Wisdom from Jack Brennan, Former CEO of Vanguard |url=https://www.boldin.com/retirement/financial-wisdom-from-jack-brennan-former-ceo-of-vanguard/ |access-date=July 15, 2021}}
* {{Cite web |title=Interview with Eugene Fama |url=https://www.minneapolisfed.org/article/2007/interview-with-eugene-fama |access-date=December 1, 2007}}
* {{Cite web |title=Are index funds still the way to go? |url=https://yalealumnimagazine.org/articles/5729-are-index-funds-still-the-way-to-go |access-date=October 15, 2023}}
* {{Cite web |title=Burton Malkiel Advocates for Direct Indexing |url=https://www.nasdaq.com/articles/burton-malkiel-advocates-for-direct-indexing |access-date=February 21, 2024}}
* {{Cite web |title=Unless you're Warren Buffett, you're better off investing in an ETF, top economist says |url=https://finance.yahoo.com/news/unless-youre-warren-buffett-youre-010000011.html |access-date=March 13, 2024}}
* {{Cite web |title=Paul Samuelson and the Birth of the Index Fund |url=https://community.macmillanlearning.com/t5/economics-blog/paul-samuelson-and-the-birth-of-the-index-fund/ba-p/3279 |access-date=September 3, 2011}}
* {{Cite web |title=Burton Malkiel Advocates for Direct Indexing |url=https://www.nasdaq.com/articles/burton-malkiel-advocates-for-direct-indexing |access-date=February 21, 2024}}
* {{Cite web |title=How To Build A Complete Benjamin Graham Portfolio |url=https://www.grahamvalue.com/article/how-build-complete-benjamin-graham-portfolio |access-date=April 10, 2020}}
* {{Cite web |title=Benjamin Graham: Passive Advocate? |url=https://www.etf.com/sections/features/benjamin-graham-passive-advocate |access-date=Jul 20, 2023}}</ref>