There are a lot of choices when investing, but when it comes to funds there are two main approaches, active and passive.

Active funds are overseen by portfolio managers who choose to invest in a selection of stocks or bonds with the aim of outperforming a comparable stock market index. These funds are generally subject to higher fees, but have the potential to deliver returns in excess of the benchmark through the skill of professional portfolio managers.

Index (or passive) funds are also overseen by portfolio managers and aim to replicate the performance of an index, such as the S&P 500 in the US. There isn’t the same “active” stock picking by the portfolio manager. These funds typically achieve diversification and returns in-line with stock market averages, but management fees are low.

There are two commonly used index investing fund types: traditional index tracker funds and exchange traded funds (ETFs). At BlackRock we offer over 200 index funds across index tracker funds and ETFs.

Remember that all investments involve an element of risk and past performance is not a guide to future performance. The value of your investment and the income from it will vary, and your initial investment amount cannot be guaranteed.

Equity funds

Below is a compilation of our index tracker funds and ETFs for key exposures:

Fixed Income funds

Below is a compilation of our index tracker funds and ETFs for key exposures:

Choosing an index fund

The fundamental difference between index tracker funds and ETFs is how and when you can buy them.

Consult your financial adviser to determine which is best to help achieve your investment objectives.

Index tracker fund ETF
How to buy
  • Trading platforms
  • A stock broker
  • Many trading platforms
When to buy
  • Single price and single trading point during the day
  • Any time during open market hours

Why BlackRock for index investing

BlackRock pioneered the indexing industry, establishing the first institutional index in the 1970s (originally Wells Fargo, acquired by BlackRock). Today we are one of the world’s largest providers of both index mutual funds and ETFs.

Key reasons to consider BlackRock for your index investing:

  • Extensive index offering, with over 200 funds across all asset classes
  • Our disciplined approach focused on managing return, risk and cost for all funds

Benefits of index investing

Index funds generally aim to achieve diversification and returns in line with the market, usually with low management fees. The key benefits of index investing are:

  1. Diversification

    Index funds are made up of a broad portfolio of individual securities so they’re usually diversified in line with the index they track. This can help lessen the risk that comes with investing in a single security.

  2. Cost-effectiveness

    The average management fee of an index fund is generally lower than an active fund invested in the same market or sector.

  3. Transparency

    Index funds are transparent in their investment objective – to achieve results in line with the index they are tracking. They also tend to be highly transparent in their holdings. For example, iShares publish the holdings of each of their funds daily on their website.

  4. Consistency of market returns

    Index funds aim to deliver the returns of their chosen market by investing in the securities that make up the relevant index (less fees). However index funds won't provide the opportunity to outperform benchmark.

  5. Efficient building blocks

    Index funds can provide the foundation or starting point for a diversified portfolio, with low-cost exposure to a given segment of the market.

  6. Accessibility

    Both index tracker funds and ETFs are available on many platforms, and ETFs are listed on stock exchanges and can be bought and sold via a stock broker.