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How closely do index funds track their indexes?

April 26, 2017closely funds index indexes track

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How closely do index funds track their indexes?

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Index funds track their index relatively well. Vanguard’s fund indexed to the S&P 500 has been in existence since 1976. A review of this fund’s performance since 1976 shows the fund’s return is generally within 1% of the S&P 500.