Over the past 30 years, the S&P 500 index has delivered a compound average annual growth rate of 10.7% per year. ... Index funds track a particular index and can be a good way to invest.

But despite the above-average returns against peers, it mirrored the category index over an eight-year and 10-year period. When adjusting for risk, this fund is competitive.

Explore the differences between index funds and mutual funds in our comprehensive guide for ... It has delivered an average annual return of 7.84% since 2000, just under the Index's average.

In 2023, the median expense rate for equity mutual funds was 1.01, and the average was 1.11. ... so if the S&P 500 gains 5% in a year, an index fund tracking it will produce the same gain.

Index funds are passive investments, ... (ICI), the average annual expense ratio for active equity mutual funds was 0.64% in 2024 vs. just 0.05% for index mutual funds.