AIER's Luke Delorme in The Week

Monday, September 19, 2016

Unlike regular mutual funds, index funds are passively managed, meaning there's no buying and trading — just buying and holding on for the long haul. Because of that, the fees associated with investing are much lower. So is the risk, thanks again to diversification. "[The fund] just moves with the market. You don't have to worry about individual fluctuations, like are people buying lots of iPhones this year or what health drugs are coming out," Luke Delorme, a research fellow at American Institute for Economic Research, told Forbes. Even Warren Buffet has sung their praises as a choice for nonprofessional investors.