As an investor, one of the best and easiest decisions you can make is to buy an index fund.

Owning an index fund that tracks the S 500 like the SPDR S 500 ETF Trust (NYSEMKT: SPY) does much of the challenging and tedious work of investing for you. It automatically diversifies your portfolio over 500 of the top U.S. large-cap stocks and will adjust it over time, dumping underperforming members and adding ones that have earned their membership in the exclusive club.

S 500 ETFs also have few added costs, as the SPDR ETF has an expense ratio of just 0.09%. The Vanguard 500 Fund (NYSEMKT: VOO), which also tracks the S 500, has an even lower expense ratio at just 0.03%. 

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Source Fool.com