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.
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Just getting started with stocks?

Closing Market Update

The major indexes sank to near four-month lows in a broad-based selloff after weaker-than-expected consumer confidence numbers exacerbated recession concerns.

Opening Market Update

Stocks lose steam after Monday's rally as the dollar strengthens to a 10-month high. Treasury yields remain elevated.

Trading Growth & Value Stocks

In this webcast, learn about the differences between growth, value, and income investment styles.  Learn about the different fundamental criteria for each style, how to create and save a search on Schwab.com, and how to find stocks that meet those criteria. Finally, discover the goals typically associated with each investment style.

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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.

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