If we are dealing with the term index- the index itself cannot be invested in. It is a benchmark used by media and analysts to measure performance.
A mutual fund or ETF can mimic (follow) the index. There will be tracking error and error because of fund/ ETF expenses.
A person can choose a portfolio of stocks, but calling that "creating an index" is not truly real (what will they measure performance against).
I check to see if my managed funds beat the S&P 500- especially my large cap and mid cap funds. I also check my small cap, mid cap and large cap funds vs the Wilshire 5000.
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- General questions get general responses. Specific questions get better responses. Want a better answer? Re-read my signature LOL
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