Index investing aims to follow a defined index. An index may cover a broad market or a narrow segment. Its selection and weighting rules determine which exposures dominate.
A fund that follows an index still has costs, tracking differences and investment risks. “Index” and “diversified” describe different things: a narrow index can be concentrated in one region or industry.
Learning to read the mandate, holdings and fee information is more useful than treating the label as a guarantee. Investing 101 explains these concepts without recommending a specific fund or brokerage.
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