The Cheapest Index Funds: A Guide to Low Cost Investing Index funds have long been touted as a savvy way to invest in the stock market without breaking the bank.
They offer broad diversification and often outperform actively managed portfolios over the long haul by pooling money from multiple investors and using it to buy a basket of securities.
However, even among index funds, costs can vary wildly – and these differences can add up significantly over time.