What Are Index Funds?

January 31, 2023 Beginner
We discuss how index funds work, identify some indexes these funds track, and examine benefits and risks associated with index fund investing.
Transcript Open new window

Just getting started with stocks?

Opening Market Update

Jerome Powell will testify to Congress, President Biden will deliver the State of the Union, and February's jobs report comes out Friday, while government shutdown fears linger.

Closing Market Update

The S&P 500 and Nasdaq Composite posted record highs for second day in a row amid technology strength and easing inflation concern.

Investing During Stock Market Highs

Watch to learn how to invest when the stock market is at all-time highs.

Related topics

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risks, including the loss of principal invested.

The example is hypothetical and provided for illustrative purposes only. It is not intended to represent a specific investment product. Dividends and interest are assumed to have been reinvested, and the example does not reflect the effects of taxes or fees.

Investors should consider carefully information contained in the prospectus, or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can view, download, and print a prospectus by clicking Investor Information. Please read the prospectus carefully before investing.

The Dow Jones Industrial Average® and the S&P 500® are products of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and have been licensed for use by Charles Schwab & Co., Inc. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Charles Schwab & Co., Inc. is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones and S&P 500.

1121-1WS4