Why Index Funds Beat Most Active Traders

Index funds track a market benchmark instead of trying to outsmart it. Over long periods, they consistently beat the majority of actively managed funds after fees, and they do it with far less effort.

Low fees are the secret. A 1% difference in annual fees can cost you tens of thousands of dollars over a few decades because of compounding. Broad diversification also protects you from individual stock disasters.

Automate a monthly purchase into a total-market index fund and let time do the heavy lifting. Consistency beats timing.