Introduction 1

Part I: The (Mostly) Nonviolent Indexing Revolution 7

Chapter 1: What Indexing Is and Isn’t 9

Chapter 2: A Short History of the Index and Index Investing 19

Chapter 3: Why Indexing Works - and Works So Darned Well 33

Chapter 4: Why Everyone Isn’t Indexing 45

Chapter 5: A New Era Begins: ETFs and Alternative Indexes 59

Part II: Getting to Know Your Index Fund Choices 73

Chapter 6: The Basic Index Investing Components 75

Chapter 7: Investing in Stock Indexes: Your Gateway to Growth 95

Chapter 8: Investing in Bond Indexes: Protecting Your Principal 133

Chapter 9: Diversifying Your Portfolio with Commodity, REIT, and Other Indexes 151

Part III: Drawing a Blueprint for Your Index Portfolio 171

Chapter 10: Finding a Happy Home for Your Money 173

Chapter 11: Developing Your Broad Investment Goals 185

Chapter 12: Fine-Tuning Your Index Selections 197

Chapter 13: Mixing and Matching Passive and Active Investing 209

Chapter 14: Making Your Final Investment Decisions 225

Chapter 15: A Bevy of Sample Index Portfolios 233

Part IV: Ensuring Happy Returns 245

Chapter 16: Buying and Holding: Boring, But It Really Works 247

Chapter 17: Seeking Additional Assistance from Professionals Carefully 259

Part V: The Part of Tens 269

Chapter 18: Ten Ways to Deal with the Temptation to Beat the Market 271

Chapter 19: Ten Ways to Screw Up a Perfectly Good Index Portfolio 277

Chapter 20: Ten Q & As with John Bogle, Father of Index Investing 281

Part VI: Appendixes 287

Appendix A: A Select List of Index Mutual Funds 289

Appendix B: A Select List of Exchange-Traded Funds 297

Appendix C: Helpful Web Resources for the Smart Index Investor 315

Index 321