Index Investing and Passive Investing Gain Popularity

Index investing, or passive investing, is growing more popular among investors, even Warren Buffet acknowledges the benefits of owning an entire index like the S&P 500. An example provided is BMO's S&P 500 index ETF, the largest ETF in Canada, which tracks a well-recognized and popular index, providing exposure to the market-cap weighted S&P 500 index at a low cost with a management fee of just 0.08 percent. This broad market ETF serves as an efficient building block in a portfolio, saving time and effort while mitigating single-stock risks, especially for exposure to the largest and most liquid public companies in the United States.