Index Investing: A Practical Approach That's Anything But Ordinary

 

When it comes to investing, sometimes simpler is better.

Rather than paying a fund manager to actively select investments, many investors seek efficient, low-cost alternatives. One of the most popular are index funds and Exchange -Traded Funds (ETFs) that seek to replicate, or "mirror" the holdings of specific market indexes, like the Dow Jones Industrial Average or the S&P 500. The goal of these funds is to track the performance of their benchmark indexes as closely as possible, which is why they are often referred to as "passively managed" funds.
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Domestic Equity Funds

Domestic equity funds focus on stocks of U.S. companies doing business in a broad spectrum of industries and market sectors.
 

Mutual Funds

Fund Name / Symbol
Overall Morningstar
Rating
Fund
Category
Total Net
Assets
Yield
Net Expense
Ratio
 

ETFs

Data as of ET
Fund Name / Symbol
Overall Morningstar
Rating
Category
Market Price
Today's %
Change
Expense
Ratio

International Equity Funds

International equity funds invest in stocks of companies located primarily outside of the U.S.
 

Mutual Funds

Fund Name / Symbol
Overall Morningstar
Rating
Fund
Category
Total Net
Assets
Yield
Net Expense
Ratio
 

ETFs

Data as of ET
Fund Name / Symbol
Overall Morningstar
Rating
Category
Market Price
Today's %
Change
Expense
Ratio

Specialty/Sector Funds

Specialty and sector funds focus on specific industries or narrow segments of the market, such as natural resources or technology companies.
 

Mutual Funds

Fund Name / Symbol
Overall Morningstar
Rating
Fund
Category
Total Net
Assets
Yield
Net Expense
Ratio
 

ETFs

Data as of ET
Fund Name / Symbol
Overall Morningstar
Rating
Category
Market Price
Today's %
Change
Expense
Ratio

Taxable Bond Funds

Taxable bond funds invest in bonds and other debt instruments that pay interest subject to federal and state income taxes.
 

Mutual Funds

Fund Name / Symbol
Overall Morningstar
Rating
Fund
Category
Total Net
Assets
Yield
Net Expense
Ratio
 

ETFs

Data as of ET
Fund Name / Symbol
Overall Morningstar
Rating
Category
Market Price
Today's %
Change
Expense
Ratio

Fund selection criteria: The funds displayed are not a recommendation by E*TRADE Securities or its affiliates to buy, sell or hold any security, financial product or instrument nor is it an endorsement of any specific security, company, fund family, product or service. All screens display funds within the respective category and group. All mutual fund screens exclude funds not open to new investors, exclude funds that have expense ratios greater than 2% and only include NLNTF mutual funds with initial investment minimums of $5,000 or less. All ETF screens exclude exchange traded notes and leveraged ETFs. The top performing funds, based on 3 Year total return, within the various category screens are shown in the initial display along with the all the NLNTF All-Star funds of the corresponding category. All funds in the initial display are ranked by 3 Year total return.

1 Selected categories: Large Blend, Large Growth, Large Value, Mid Blend, Mid Growth, Mid Value, Small Blend, Small Growth, Small Value

2 Selected categories: China Region, Diversified Emerging Markets, Diversified Pacific/Asia, Europe Stock, Foreign Large Blend, Foreign Large Growth, Foreign Large Value, Foreign Small/Mid Blend, Foreign Small/Mid Growth, Foreign Small/Mid Value, Global Real Estate, India Equity, Japan Stock, Latin America Stock, Miscellaneous Region, Pacific/Asia ex-Japan Stock, World Stock

3 Selected categories: Bank Loan, Corporate Bond, Emerging Markets Bond, High Yield Bond, Inflation-Protected Bond, Intermediate Government, Intermediate-Term Bond, Long Government, Long-Term Bond, Multisector Bond, Nontraditional Bond, Preferred Stock, Short Government, Short-Term Bond, Ultrashort Bond, World Bond

4 Selected categories: Communications, Consumer Cyclical, Consumer Defensive, Energy Limited Partnership, Equity Energy, Financial, Health, Industrials, Miscellaneous Sector, Natural Resources, Real Estate, Technology, UtilitiesSelected categories: Large Blend, Large Growth, Large Value, Mid Blend, Mid Growth, Mid Value, Small Blend, Small Growth, Small Value

All funds within the respective group can be seen by clicking on the hyperlinked section in the phrase, " X of X results," "See more mutual funds," "See more ETFS'.

International investing carries certain risks that can be different from the risks of U.S. investments. These risks can include political or economical instability, changing currency rates, foreign taxes, reduced liquidity (difficulty selling securities held by a fund) and different regulatory or financial accounting standards.

The Morningstar RatingTM for funds is calculated for management investment company products registered under the Investment Company Act of 1940 (including mutual funds, exchange-traded funds and closed-end funds) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are analyzed as a single product category for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.


The All-Star List is a quarterly list of leading funds and ETFs selected by E*TRADE Capital Management, LLC. Funds selected for the All-Star List are selected from the no-load mutual funds offered through E*TRADE Securities.
All-Star Funds typically have at least a three year track record and compare favorably against their peers based on historical return, risk, expenses, manager tenure, performance and style consistency, asset size and growth and must be 1) structured through sound investment philosophy and process, 2) implemented with acceptable level of investment risk management strategy and 3) supported by a reputable investment firm. To view the fund's Report Card with additional performance metrics, including standardized quarterly results, please click on the fund name.
Expense ratios are provided by Morningstar and are based on information obtained from the ETF's last audited financial statement. Current expense ratios for the ETFs may be different.


Yield is a measure of the fund's income distributions, as a percentage of the fund price. Morningstar calculates this figure by summing the income distributions over the trailing 12 months and dividing that by the sum of the last month's ending NAV plus any capital gains distributed over the 12-month period.
For a definition of terms, please click on the Data Definitions link. Data definitions provided by Morningstar.
Quotes may be delayed by at least 15 minutes. Quotes and other information supplied by independent providers identified on the E*TRADE vendor disclosures page. Data provided by Morningstar, Inc.