Index Fund
InvestingGlossary term
Definition
A type of mutual fund or ETF designed to track the performance of a specific market index, like the S&P 500. Known for low fees and passive management strategy.
Related terms
- Mutual FundAn investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities, professionally managed by a fund manager.
- S&P 500A stock market index tracking the 500 largest US companies. Widely used as a benchmark for the overall stock market and the basis for many index funds.
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