An index fund buys hundreds of stocks at once instead of betting on one winner — and the fee gap is huge: a cheap index fund can cost $3 a year on $10,000, while the average stock fund charges $40. The S&P 500 has averaged about 10% a year since 1957, but that is an average, not a promise — check the expense ratio before you buy. Follow US Money Guide for daily money tips!
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