Index funds are investments that follow the performance of a benchmark index.
In Canada, the best index funds offer less volatility than stocks and lower fees than actively managed mutual funds. They can diversify your portfolio by spreading your money across numerous stocks and industries. And, because they’re passively managed, they don’t come with high commission fees, either.
If you’re looking for a low-cost investment that exposes you to the best companies in the Canadian economy while also limiting your risk, index funds might be right for you. Incorporating index funds into an investing strategy can enhance the safety of a diversified portfolio, thanks to their wide market coverage and cost-effective nature.
Below we’ll break down these hefty investments and help you pick the best Canadian index funds for you.
What are index funds?
Index funds are simply investments that track a market index, such as the…
