We lead extremely busy lives. Some of us simply don't have the time to play an active role in our investments. If you're looking for a passive investment strategy with low fees, index funds can be a good option. They're designed to track and perform like market indices. Index funds purchase securities that make up a market index. These funds attempt to match the market instead of trying to beat it.
For some investors, index funds may be a low-cost way to spread their investment dollars across many different investments. They have a lower MER compared to non-index ETFs and mutual funds.
The stock market can be volatile and unpredictable at times. However, most market indices tend to rise in value over time. As index funds mirror the performance of market indices, while not guaranteed, they may be considered by some to be stable investments over the long term.
Index ETFs have no minimum, and you can buy as little as one share. Make sure to consider your capacity for risk before investing.