Index funds are investment funds whose investment policies are based on replicating the behavior of an index, which they use as a reference.
Bankinter USA Nasdaq 100 is the index fund with the highest compound annual growth in the last 3 years at 20.71%. Invests 100% in large market capitalization US equities. The index it uses as a reference is the Nasdaq 100.
In second place we have the Amundi SP 500 ESG which, as its name indicates, uses the S&P 500 ESG as its reference index, which is made up of the same values as the S&P 500, except it does not include those companies. which do not conduct their business according to the rules. environmental principles, social and good corporate governance, the so-called ESG criteria. Its compound annual return in the last 3 years is 18.38%.
iShares, Blackrock’s ETF and index fund platform, ranked third and fourth on the list.
The iShares North America Equity Index generated an annualized rate of return of 18.00% over the past 3 years based on MSCI North America, an index designed to measure the performance of the large and mid-cap segments of the US markets and Canada . Broader than the S&P 500 as it is made up of 713 components
Next we have the iShares US Index, which has an annualized rate of return of 17.97% over the last 3 years and which takes the S&P 500 as a reference.
In fifth place we find the Vanguard US 500 Stock Index, which also references the S&P 500 and with an annualized return of 17.74% over the past 3 years.
What is Index Fund?
An index fund is an investment fund whose investment policy is based on replicating the behavior of an index, which they use as a reference.
Therefore, the portfolio of this fund can be made up of assets that appear in the said index, or by derivative instruments that take the mentioned index as the underlying as the reference. An example of this would be index futures.
They are also called passively managed funds, as the method of management is not active; Their portfolio behaves and is built according to the parameters of the index they have taken as a reference, with no further action required.
In general, index funds have significantly higher returns and often outperform actively managed funds.
Regarding the growth of indices, the NASDAQ 100 is up 17.37% against the dollar so far this year, and 14.94% taking the euro as a reference. The S&P 500 gained 7.41% and 5.18%, respectively, while the Dow Jones gained 0.46% this 2023 with the dollar as the reference, but fell 1.62% in community currencies.
