Index Fund
Investment Vehicles
Definition
A type of mutual fund or ETF designed to track the performance of a specific market index, offering broad diversification with low fees and passive management.
Key Points
- Tracks specific market index
- Low fees and passive management
- Provides instant diversification
Examples
S&P 500 Index Fund
Total Stock Market Index
Quick Info
Category
Investment Vehicles
Related Topics
passive investing
etf
tracking error
Related Terms
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