Smart Finance

Term

Index fund

A fund that simply copies an index instead of trying to beat it. Very low fees, because there is no manager picking stocks; over long stretches most active strategies fail to beat it.

In pesos: A 0.1% fee instead of 2% on $100,000 MXN is $100 a year instead of $2,000.

Where to go deeper

2/2 6 min Read ETFs: five hundred companies in one go What an ETF is, why it diversifies, what its fee really costs you, two real examples (an S&P 500 ETF and NAFTRAC), and how it differs from picking single shares.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.