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Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
A stock market index is a basket of securities selected according to specific criteria (size, sector, region) that serves as a benchmark to measure market performance. Most ETFs aim to replicate the performance of a specific index — these are called passive or index ETFs.
The S&P 500 is the index of the 500 largest American companies. VFV.TO (Vanguard S&P 500 Index ETF) replicates this index. The TSX Composite groups ~250 of the largest Canadian companies. XIU.TO (iShares S&P/TSX 60) tracks the 60 largest Canadian companies.
Investing in an index ETF means you get exactly the market return, minus fees. Decades of research show that the vast majority of active managers (who try to "beat" the market) fail to do so over long periods. This is the foundation of passive investing philosophy.