If investing had a “set it and forget it” solution, it would be the index fund. Recommended by Warren Buffett himself, index funds are simple, affordable, and powerful—especially for beginner and long-term investors.

What is an index fund?
An index fund is a type of mutual fund or ETF that tracks a specific market index, such as the S&P 500, TSX Composite, or NASDAQ 100. Instead of trying to beat the market, it aims to match its performance.

Why are they so popular in 2025?

• Low fees: Index funds are passively managed, so they have minimal management costs—often under 0.10%.
• Diversification: With a single purchase, you get exposure to hundreds or even thousands of companies.
• Consistent performance: Historically, broad-market index funds outperform most actively managed funds over time.

How to invest in them:

• Open a brokerage account with a platform like Vanguard, BlackRock (iShares), or Wealthsimple.
• Choose a fund that tracks your target market (e.g., S&P 500 for U.S. growth, MSCI World for global exposure).
• Use dollar-cost averaging to invest regularly, regardless of market conditions.

Who are index funds ideal for?

• Beginners who want simplicity
• Long-term investors seeking compounding returns
• People without time or desire to manage portfolios actively

Warren Buffett even said he wants 90% of his estate invested in a low-cost S&P 500 index fund. If it’s good enough for him, it’s worth a serious look.