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What is an index fund?

Quick Answer

An index fund is a mutual fund or ETF designed to track a specific market index, such as the S&P 500. It buys all (or a representative sample) of the index's holdings and matches its returns minus a tiny expense ratio.

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Warren Team
Updated October 25, 2025
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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