Description
Book SynopsisIndex funds are based on a simple concept: when the index goes up, index funds benchmarked to that index should go up nearly an identical amount and vice versa. Index Investing For Dummies shows readers how they can make use of index funds to take advantage of these large markets and maximize the return on their investments.
Table of ContentsIntroduction 1
Part I: The (Mostly) Nonviolent Indexing Revolution 7
Chapter 1: What Indexing Is and Isn’t 9
Chapter 2: A Short History of the Index and Index Investing 19
Chapter 3: Why Indexing Works — and Works So Darned Well 33
Chapter 4: Why Everyone Isn’t Indexing 45
Chapter 5: A New Era Begins: ETFs and Alternative Indexes 59
Part II: Getting to Know Your Index Fund Choices 73
Chapter 6: The Basic Index Investing Components 75
Chapter 7: Investing in Stock Indexes: Your Gateway to Growth 95
Chapter 8: Investing in Bond Indexes: Protecting Your Principal 133
Chapter 9: Diversifying Your Portfolio with Commodity, REIT, and Other Indexes 151
Part III: Drawing a Blueprint for Your Index Portfolio 171
Chapter 10: Finding a Happy Home for Your Money 173
Chapter 11: Developing Your Broad Investment Goals 185
Chapter 12: Fine-Tuning Your Index Selections 197
Chapter 13: Mixing and Matching Passive and Active Investing 209
Chapter 14: Making Your Final Investment Decisions 225
Chapter 15: A Bevy of Sample Index Portfolios 233
Part IV: Ensuring Happy Returns 245
Chapter 16: Buying and Holding: Boring, But It Really Works 247
Chapter 17: Seeking Additional Assistance from Professionals Carefully 259
Part V: The Part of Tens 269
Chapter 18: Ten Ways to Deal with the Temptation to Beat the Market 271
Chapter 19: Ten Ways to Screw Up a Perfectly Good Index Portfolio 277
Chapter 20: Ten Q & As with John Bogle, Father of Index Investing 281
Part VI: Appendixes 287
Appendix A: A Select List of Index Mutual Funds 289
Appendix B: A Select List of Exchange-Traded Funds 297
Appendix C: Helpful Web Resources for the Smart Index Investor 315
Index 321
