The Power of Index Investing
Market Indexes outperform 80% of actively managed funds over the long term. When you invest in a portfolio that uses an indexing strategy, and you hold it for a long time, you won't miss out on long-term stock or bond market growth.
When the markets are climbing, so is your investment.
An indexing strategy means your portfolio tracks the markets every step of the way. And because your investment copies the returns of the whole index, you won't miss out on any long-term stock market or bond market growth.
So what does an indexing strategy have to do with being Streetwise?
Investing in a portfolio made entirely of market indexes means taking advantage of the fact that the market is wiser than any single investor. Most mutual funds have expensive management teams weighed down by managers, research and trading expenses so they lag the market performances. If you simply invested in the entire market by buying the index, you'd do better than actively managed mutual funds most of the time.
What's really important to note, is that the Stock and Bond Indexes have grown for decades. And that growth is why tracking the index makes sense. Now add compounding growth with reducing costs, and that's really what makes this mutual fund streetwise.




