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Index Funds are low-cost Mutual Funds, which maintain a very low tracking error against a Benchmark Index. The range of Indexes is infinite, Market, Market Cap, Sector. No investment decisions are made.

Index Funds covers both Index Mutual Funds and ETFs. They are collective investment schemes. Index Funds aim to have a negligible Tracking Error to a stated Benchmark Index. The objective of an Index Fund is for an investor to gain exposure to a specific grouping of Stocks, by Market Cap, Sector, Economic Region or a Country. No investment decisions are made, no matter the market conditions. Index Funds offer diversification by holding all the Stocks in the Index. The ability to trade is the difference between an Index Mutual Fund and ETFs. ETFs are traded on a Stock Exchange, acting like a basket of Stocks. Trading in the units is often Intraday. Index Mutual Funds offer a tradable NAV, possibly daily or at least weekly. The Units are traded through the Fund Administrator via a subscription redemption process.

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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.