Why Indices?

Benefits of Investing in an Index Over Individual Tokens

1. Diversification

• Broad Exposure: Index funds provide exposure to a wide range of tokens across various sectors or projects. This diversification reduces the impact of poor performance from a single token.

• Risk Reduction: By spreading investments across multiple assets, the risk of significant loss is minimized.

2. Passive Management

• Less Time-Consuming: Index funds follow a passive investment strategy, requiring less time and effort from investors compared to researching and managing individual tokens. Our indices are automatically rebalanced every hour with the most appropriate tokens for the index.*

3. Consistent Performance

• Market Tracking: Index funds aim to replicate the performance of a specific market index, providing returns that are consistent with the overall market.

• Reduced Human Error: Passive management reduces the impact of human error in token selection.

4. Ease of Investment

• Simplified Decision-Making: Investing in an index fund simplifies the investment process, as it eliminates the need to select individual tokens.

• Accessibility: Index funds are suitable for investors with different levels of expertise.

*NOTE: Sol Index does not currently rebalance tokens within your wallet, as it is a non-custody solution. The tokens are rebalanced on the website and you purchase a snapshot of that index. We are working towards a system by which individuals can self-direct an index rebalance at any moment in time to the current token inclusion and weight.