Yes, fees are definitely something you need to look out for. Vanguard (whose main selling point is low expenses) released a study a little while ago that largely proved that low expenses, not past performance, were the main indicator of future success. Since index funds generally have the lowest expenses of any mutual fund category, theoretically they should have the best returns over time. Theoretically. I'm not a professional investor by any stretch, but in our family's portfolio, I make it a point to keep fees well below average, even though we only use indexing as part of our strategy. We never have or will ever buy a fund with a load. Loads are killer, especially if you believe in dollar-cost averaging your investments. And while we own a few transaction fee funds, the vast majority of our holdings are NTF (no transaction fee) funds. I really like index funds as opposed to index ETFs because you can usually get a perfectly good indexer as an NTF fund, especially through 401(k) plans, and again, not paying money every time you put a little bit more money into the fund can make a huge difference over time. The reason I recommend studying up so much on investing before you actually take the plunge is that you should be able to do most of your investing yourself. It takes a little time to learn, but you can save a lot of money in the long run by not paying someone to make your decisions for you. This isn't for everyone, of course, but I think a lot of people would do just as well with their own Ameritrade/E-trade/whichever personal brokerage account than they would do paying someone to take care of things for them.