Shay is the chief investment officer of her firm's pension plan. Some members of the steering committee are interested in index funds for the company's pension fund. Which of the following is a reason to select an index fund for use in the pension fund?
A)
An index fund has high administrative costs.
B)
An index fund may employ market timing techniques from time to time to increase returns.
C)
The use of an index fund is indicative of active portfolio management.
D)
The purpose of an index fund is to match the long-term performance of a targeted index, such as the S&P 500.