Index funds are passive investments. They track an index with the aim of replicating that index’s performance minus expenses. Active funds, meanwhile, are led by managers who choose particular securities to outperform an index.However, some index funds are better than others. The best index funds closely track their indexes, minimize costs, and follow sensible rules-based…

In many ways, exchange-traded funds are an evolution of mutual funds. ETFs are like mutual funds that trade throughout the day but are more tax-efficient, transparent, and accessible. And they are often cheaper than their mutual fund forebears.But these advantages don’t apply to every ETF. Some purported benefits of ETFs are oversold, while others are…