How do I start investing in index funds?

First you need a brokerage account that lets you buy ETFs. You have to look for the ETF symbol or search for the ETF manually, and then specify how many stocks you want to buy. Likely, almost every platform allows this. Compare brokerage platforms to find the one that suits your needs.

How much does it cost to invest in index funds?

Invest as much as you want without any minimums. However, each ETF has an annual fee called the expense ratio. For most ETF this is less than 0.5% each year.

Are index funds a good way to invest?

Yes, especially if you don't want to research and select individual stocks yourself.

Can I lose money in an index fund?

Yes, if the investments the index fund tracks decline in value, you can lose money. However, index funds are typically diversified across many investments, which can reduce the impact of any single investment performing poorly.

Compare

Best bad credit loans

Best debt consolidation loans

Business loan brokers

Startup loans

Banking

Chequing accounts

Best chequing accounts

Best fee-free accounts

Best new account offers

Savings accounts

Best high-interest accounts

Best kids' accounts

Best teen accounts

Best mobile banking apps

Business banking

Best business bank accounts

Business money transfers

Money transfers

Best money transfer apps

Balance transfer cards

Cashback cards

Instant approval cards

Best stock trading apps

Best ETFs

TSX stocks

US stocks

Best brokerage bonuses

Cryptocurrency

Best crypto exchanges

Melanie Huddart

Editor

Melanie Huddart is a personal finance editor and updates writer who's proofed and polished thousands of articles to help people make more informed financial decisions. She specializes in issues around accessibility and equality, as well as removing biases in managing finances for people who are unbanked or marginally banked. Melanie is an ASL-English Interpreter with experience in writing and learning assistance in college and high school classrooms, teaching English and Indigenous studies both in-person and online. She holds a BA in honors English and a Bachelor of Education from York University in Toronto.