The return on an index fund may be less than the return on the index it represents because of

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Index funds aim to track the performance of a particular index, but tracking errors and costs can cause the fund's return to be lower than the actual index return. Management fees and load fees can also lower the returns, but they are not always the sole reason for a lower return. Dividends and taxation can affect the returns on the fund, but they do not necessarily make it lower than the index return.

The Return on an Index Fund May Be Less Than