Index funds are passive investment vehicles, they track the whole index.
e.g. $10,000 (a lot of money) invested in the US Stockmarket, the Standard & Poors 500 Index in 1942.
today, that $10,000 investment, on 11th March 1942 (the date that Warren Buffett bought his first stock) would be worth…..
$51,000,000
Yes, $10,000 dollars turned into $51 MILLION dollars.
Index funds are beautiful.