1. Pick an index
There are hundreds of different indexes you can track using index funds. The most popular index is the S&P 500 Index
Here's a short list of some additional top indexes, broken down by what part of the market they cover:
- Large U.S. stocks: S&P 500, Dow Jones Industrial Average, Nasdaq Composite
- Small U.S. stocks: Russell 2000, S&P SmallCap 600
- International stocks: MSCI EAFE, MSCI Emerging Markets
- Bonds: Bloomberg Barclays Global Aggregate Bond
In addition to these broad indexes, you can find sector indexes, country indexes & so on
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