Ep15: What are Index Funds and ETFs?

Connecting with Cardone’s discussion on 401(k) contributions, in this episode we discuss Index Funds and ETFs in more detail.

Overview:

Index Funds and ETFs have seen stratospheric growth since the collapse of 2008 – benefitting from computerized trading and quantitative forms of investment management. No matter where you look, the gospel of index fund investing has been taken to heart by the media, and the masses, alike. For the mass consumer, apparently, this form of “passive investing” is far superior – even revolutionary.

But what is the truth? How exactly do index funds work? Are they really the sure bet they’re made out to be? We will discuss the benefits as well as the flaws in the logic underlying many investment plans using index funds;

We will discuss:

• What are Index Funds and ETFs
• Benefits of Index Funds and ETFs
• Risks and disadvantages of Index Funds and ETFs