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Search for an ETF or holding
Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
An index fund is an investment fund that replicates the performance of a stock market index, such as the S&P 500 or S&P/TSX. Rather than picking individual stocks, the fund holds all (or most) of the stocks in the index it tracks.
XIU.TO is an index ETF that replicates the S&P/TSX 60 index — the 60 largest Canadian companies. VFV.TO replicates the U.S. S&P 500. Instead of picking 500 stocks yourself, you buy a single ETF and get the performance of the entire index.
Index funds have much lower management fees (MER) than actively managed funds — often 0.05% to 0.25% versus 1% to 2%. Over 25 years, that fee difference can mean tens of thousands of extra dollars in your portfolio. It's the foundation of the couch potato investing strategy.