Probably the world’s most successful investor, Berkshire Hathaway CEO Warren Buffett speaks to CNBC about the advantages of index investing. He has mandated his executors to invest 90% of his $85Bn wealth into an S&P500 low-cost index tracker when he dies. He is a firm believer in the power of allocating capital to indexes with tracker funds, even though he is arguably the best-known stock picker and fund manager, ever.
Vanguard founder Jack Bogle was famous for making investing accessible to the everyday person through index funds – funds that match a market barometer like the S&P 500. His message was simple: why waste money on expensive fees and commissions for complex funds when market barometers often outperform them? That message remained remarkably consistent throughout his career.
ETF Index Tracking Explained
Broad index tracking portfolios at low cost are the solution that gives investors the best investment outcomes. IndexUniverse.com’s Director of Research, Dave Nadig, explains what exchange traded funds (known as ETF’s) are, how they work and how you can use them in a portfolio.