104: Okay, But What Even Is an Index Fund?

Don’t Beat the Market; Be the Market.

You hear about index funds everywhere…on TikTok, from your finance friends, even on our Market MakeHer merch (yes, the “Index Funds and Chill Shirt” is real). But what are they, really? And why do people say you should have them in your portfolio.

In this episode, I asked Jess to break it all down for us, starting with the jargon. We dig into why index funds are the simplest way to invest and why they’re considered the foundation of most long-term portfolios.

Plus, we take a quick trip back to the 1970s for the surprisingly dramatic story of how the first index fund was created and why people once called it “Bogle’s Folly.” Spoiler: it changed everything. Spoiler from the spoiler: markets are constantly innovating and changing.

If you’ve ever wondered where to start with investing, this one’s for you. By the end, you’ll understand exactly how index funds work and why just “being the market” can sometimes be the smartest move of all.
EducAction To-Do List:

• Check your 401(k) or IRA: Do you already own an index fund? Many retirement plans default to them.

• Compare expense ratios: If you own mutual funds, look up their fees. Are index funds cheaper?

• Think about your goals: Do you want broad exposure (total market) or focused exposure (like a sector)?

• Try dollar-cost averaging: Start small and invest consistently, instead of worrying about timing the market.
  

If you enjoyed this episode:

• Subscribe to our newsletter.

• Share it with a friend who’s just starting to invest.

• Leave us a review—your feedback helps more people find Market MakeHer.