The Index Investing Advantage

Investing in index funds is a simple, powerful way to achieve long-term growth and reduce risk for your retirement savings. Most important, index investing enables you to focus on the big picture: getting the right mix of cash, bonds, stocks and international investments that makes sense for your portfolio. Experts estimate that asset mix explains as much as 90% of overall portfolio performance.

• Consistency. Index investing offers returns that consistently track the market year after year.
  
  
• Low Cost. Index investing costs considerably less than active management, contributing to potentially higher net returns.
  
  
• Performance. History has demonstrated that index investing has resulted in above-average returns over the long term.
  
  
• Diversification. An index fund provides wide exposure to a given market so investors enjoy a high level of diversification.
  
  
• Risk Control. Index investing reduces the impact that volatility of any one security can have on your overall portfolio.
  
  
  

Why Index Funds Are Right for Your Asset Mix Strategy

Index funds offer a convenient, efficient and cost-effective way to participate in the stock or bond market. With an index fund, you’re making a one-stop investment decision to participate in the entire (stock or bond) market. In short, there are few surprises with index funds. Their aim is to provide market returns reliably.

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