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Index funds and ETFs

Instead of picking companies, you can buy the whole market in one go. That’s what most long-term investors do.

Index fundA fund that copies an index (S&P 500, MSCI World…). You buy it through banks or brokers. In Spain you can switch it to another fund without paying tax until you sell.
ETFThe same thing, but it trades on the stock market like a share. Examples: SPY or VOO (S&P 500), QQQ (Nasdaq 100). You’ll find them in the Stocks list → ETFs.
TERThe fund’s yearly fee. For index funds it’s usually under 0.3 %. For actively managed funds, 1.5-2 %.
Accumulating / distributingAccumulating: reinvests dividends automatically. Distributing: pays them out to you.

Most actively managed funds fail to beat their index over the long run, mainly because of their higher fees.

Play with the compound interest calculator: €100 a month for 30 years, at the stock market’s historical average return, is far more than you’d imagine.