The thread is too short so it doesn't provide proper understanding to the readers. So it needs further explanation.
Index funds are a type of mutual fund investment that is managed using stocks and bonds as a reference. Meanwhile, low cost index funds often charge fees based on an expenses ratio, each index fund platform will apply a slightly different amount, but generally use a percentage of around 0.05% multiplied by the amount you invest, if you invest $1000 then you will be charged a fee of $0.5 per year. and is expected to produce higher returns. Of course low index funds carry less risk than buying shares on the stock exchange.