The index fund may be the biggest invention in Wall Street history. From relative obscurity just a few decades ago, index funds grew to become more than a third of all stock fund assets under management.
What exactly are index funds, anyway? In this segment of Industry Focus: Financials, The Motley Fool’s Gaby Lapera and Jordan Wathen discuss the differences between index funds and more traditional mutual fund investments.
A full transcript follows the video.