The following are ways to implement index portfolio investing

Question

Quizplus · Accepted Answer

Buying shares in index mutual funds and buying exchange traded funds are both effective ways to implement index portfolio investing. Both options provide investors with exposure to a diversified portfolio of stocks that track a specific index (such as the S&P 500). However, buying hedge funds may not be the best choice for implementing index portfolio investing because they typically have higher fees and may not track a specific index as closely as mutual funds or ETFs. Therefore, the best choice(s) for implementing index portfolio investing are a combination of buying shares in index mutual funds and buying exchange traded funds (option E).

The Following Are Ways to Implement Index Portfolio Investing