“Passive” investing is a misnomer. Passive funds or exchange-traded funds (ETFs) charge a low fee to track an underlying benchmark, as opposed to active funds, which charge a high fee to try to beat a benchmark. But the decision to buy a tracker is anything but passive. Here are the key questions to ask before investing.
What does a tracker fund do and why buy it?
The most important thing with any fund is to understand what it does. What index or price does it claim to track; what exactly is in that [...]