Index Investing For Dummies


Index Investing For Dummies has been recommended by finance experts and extensively used by institutional investors. As index funds and exchange traded funds provide unmanaged, diversified exposure to a variety of asset classes, the book shows active investors how to add index investments to their portfolios and make the most of their money, while protecting their assets. It features plain-English information on the different types of index funds and their advantage over other funds, getting started in index investing, using index funds for asset allocation, understanding returns and risk, diversifying among fund holdings, and applying winning strategies for maximum profit.

Index Investing for Dummies will help you learn about the following:

  • What are index funds, anyway? ― learn how index mutual funds and exchange-traded funds work and their advantages over other funds

  • Evaluate your index fund choices ― from stocks and bonds to commodities and real estate, understand the risks and rewards

  • Make the right investing moves ― discover your investing style, your connection to the market, and your long-term financial needs

  • Develop your portfolio blueprint ― decide how many funds you need, where to house them, and whether to mix index funds with other investments

  • Manage your money wisely ― disaster-proof your portfolio, correct your mistakes, and get help from the pros if you need it (but tread carefully!)

  • Ensure happy returns ― see how to maintain a smooth-running, age-appropriate, profitable portfolio for years to come

Open the book and find:

  • Clear explanations of index funds ― and why they work

  • How to avoid the temptation to beat the markets

  • Evaluations of popular index funds ― the best and the worst

  • Sample portfolios, from conservative to aggressive

  • Lists of index mutual funds and ETFs

  • Web resources that help you stay up-to-date

  • A Q&A with John Bogle, founder of Vanguard

Table of Contents


Part I: The (Mostly) Nonviolent Indexing Revolution

  • Chapter 1: What Indexing Is . . . and Isn’t

  • Chapter 2: A Short History of the Index and Index Investing

  • Chapter 3: Why Indexing Works — and Works So Darned Well

  • Chapter 4: Why Everyone Isn’t Indexing

  • Chapter 5: A New Era Begins: ETFs and Alternative Indexes

Part II: Getting to Know Your Index Fund Choices

Part III: Drawing a Blueprint for Your Index Portfolio

  • Chapter 10: Finding a Happy Home for Your Money

  • Chapter 11: Developing Your Broad Investment Goals

  • Chapter 12: Fine-Tuning Your Index Selections

  • Chapter 13: Mixing and Matching Passive and Active Investing

  • Chapter 14: Making Your Final Investment Decisions

  • Chapter 15: A Bevy of Sample Index Portfolios

Part IV: Ensuring Happy Returns

  • Chapter 16: Buying and Holding: Boring, But It Really Works

  • Chapter 17: Seeking Additional Assistance from Professionals . . . Carefully

Part V: The Part of Tens

  • Chapter 18: Ten Ways to Deal with the Temptation to Beat the Market

  • Chapter 19: Ten Ways to Screw Up a Perfectly Good Index Portfolio

  • Chapter 20: Ten Q & As with John Bogle, Father of Index Investing

Part VI: Appendixes

Appendix A: A Select List of Index Mutual Funds

Appendix B: A Select List of Exchange-Traded Funds

Appendix C: Helpful Web Resources for the Smart Index Investor