Article

In his 1973 book, A Random Walk Down Wall Street, economist Burton Malkiel contended that higher cost, actively managed mutual funds were flawed and unlikely to beat low-cost, passively managed index funds. Following the publication of Malkiel’s book, there were dozens of studies touting similar benefits associated with low-cost, passively managed index funds. Today, index funds are rising in popularity, and many investors blindly rely on them without truly understanding what differentiates one index fund from another.