Why invest in index funds?
In a nutshell, index funds remove the need to do investment research and diversify your exposure instead of relying on one company's performance. For example, if you want exposure to AI in your portfolio but don't know which companies will be the biggest beneficiaries of this tech trend, an AI-focused index fund could be the way to go. If AI technology continues to expand, you'll likely benefit from it regardless of what businesses end up on top.
Index funds can be a great way to create long-term wealth, and that's even true with seemingly boring index funds, like those that track the S&P 500. In fact, the S&P 500 has delivered 10.2% annualized total returns since 1965. For context, this level of performance could have turned a $10,000 investment into more than $180,000 over a 30-year period.