Index Fund

general

An index fund is an investment fund designed to track the performance of a specific market index, such as the S&P 500 or the total U.S. stock market. Index funds can be structured as mutual funds or ETFs. They offer broad diversification, low expense ratios, and consistent performance relative to their benchmark. They are a cornerstone of passive investing strategies.

Related Terms

Exchange-Traded Fund (ETF) Expense Ratio S&P 500

See this concept in action → ETF Comparison