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CNBC

Warren Buffett wants 90 percent of his wealth to go to this one investment after he’s gone

By Emmie Martin

Index funds are a form of passive investing. They hold every stock in an index such as the S&P 500, which includes big-name companies such as Apple, Microsoft and Google, and they offer low turnover rates, so fees and taxes tend to be low as well.

You can think of an index fund as a basket of stocks with hundreds or thousands of different ones inside, explains Nick Holeman, a certified financial planner at Betterment.

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This article originally published February 27th, 2019 on CNBC

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