Index investing has been proven to outperform active investing, and billionaires like Warren Buffett advocate for the use of index investing. Market indices track the performance of a group or basket of stocks that may represent a certain sector, industry or location. For example, the Nasdaq-100 is made up of 100 of the largest non-financial companies in the world, so investing in the index allows you to diversify your portfolio.
Traditional indices are based on their market capitalization — the value of outstanding shares — and growth potential. But, there’s now another approach: The Robinhood Investor Index. This revolutionary tool offers an aggregate view of the 100 top stocks
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