Section
Index funds, ETFs and mutual funds.
Target-date funds are the default investment in many American 401(k) plans, which means millions of savers own one without having chosen it. Here is how they work, what a glide path is, why two 2050 funds can hold very different portfolios, and what to check before relying on one.
Index fund, ETF and mutual fund are often used as if they were three competing products. They are not: one describes a strategy and two describe structures. This guide untangles the terms and compares how each is bought, priced, taxed and charged for an American investor.
Fees are the one part of investing you can control with certainty, and small percentages compound into large dollar amounts over decades. This guide explains every layer of cost in a US fund portfolio, where each one is disclosed, and a simple way to add up what you really pay each year.
