6 Things to consider before
The tracking error of an index fund assesses its ability to mimic the underlying index; lower error signifies effective tracking and alignment with the index's returns.
Index funds have expense ratios to manage costs. Opting for lower ratios can significantly enhance your long-term returns.
Know your risk tolerance when investing. Even with index funds, you're not immune to losses in a market downturn.
Identify your investment goals and choose investments that align with your needs and objectives for the best results.
Reviewing an index fund's past performance can provide insight into its return stability over time.
Index funds typically provide inflation-beating long-term returns but may not suit short-term investors. Assess your investment horizon before choosing them.