index funds

index funds definition - finance
Funds that mimic the performance of a specific index, such as the S&P 500. The holdings of the fund mirror the stocks that make up the particular index. Because the funds donÂ’t require managers who pick stocks, the fees are lower than for other types of funds.

Investors in index funds are considered passive investors. Those who manage index funds are often called indexers.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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