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3 Reasons Your Next Buy Should Be an Index Fund


There are a number of different ways to be a successful investor in the stock market. Some people choose to pick individual stocks, hoping to find the big winners that can catapult their portfolios to superior returns. Then there are those who might outsource their capital to investment advisors that market themselves as experts. 

Another often overlooked strategy is to go the passive route, adding savings regularly to an investment vehicle that can match the overall market's return. In fact, it might be a good idea to make your next buy an index fund, like the Vanguard S&P 500 ETF (NYSEMKT: VOO), which tracks the performance of the broader S&P 500. 

Here are three reasons why. 

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Source Fool.com

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