
Indexed Investing
Indexed investing is an investment strategy that aims to replicate the performance of a specific financial market index, such as the S&P 500. Instead of selecting individual stocks, investors purchase a fund—like an index fund or an exchange-traded fund (ETF)—that holds all the securities in that index. This approach offers broad market exposure, typically lower costs, and reduces the risk associated with picking individual stocks. By investing in an index, investors can benefit from the overall growth of the market rather than relying on the performance of specific companies.