6 Things to consider before
Tracking error is a measure of how closely an index fund follows the performance of its benchmark index. It is the standard deviation of the difference in returns between the fund and the index over a certain period of time.
Expense ratio in index funds refers to the annual fee charged by the fund to cover its operating expenses. This ratio is expressed as a percentage of the fund's average net assets.
Risk tolerance in index funds, as with any investment, refers to an investor's ability and willingness to withstand fluctuations in the value of their investment.
Investment goals for index funds can vary based on an individual's financial objectives, risk tolerance, and time horizon.
Past performance of index funds can provide valuable insights into how they have performed relative to their benchmark index and other investment options.
Investing in index funds is generally considered a long-term strategy. The benefits of index funds, such as diversification, low costs, and the ability to match market returns, are best realized over time.