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The Complete Idiot's Guide to Socially Responsible Investing by Ken Little

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Chapter 15
SRI Index Mutual Funds
In This Chapter
◆ How index funds work
◆ The role of SRI index funds
◆ Index funds provide broad or narrow market coverage
◆ Exchange traded funds on the rise
There is an ongoing war in the mutual fund industry between the investment professionals who believe it is possible to selectively pick stocks that will outperform the market and another group that says the market will win in the end. The index mutual fund is the latter group’s answer: you don’t try to beat the market; you mimic it. That’s not the whole story of index funds, but by definition, they are created to match or mimic a market index.
Indexes are usually created to track a specific market or segment of the market. Index mutual funds are organized ...

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