What Is Index Fund?
From the SB Advisors Academy money glossary · Free, no signup
A type of mutual fund or ETF that tracks a specific market index and holds all the stocks in that index automatically without active management.
A worked example
An S&P 500 index fund rises and falls with the 500 largest US companies collectively, with fees often below 0.10% per year.
Category
Part of the "Investing Basics" group in the money glossary.