Index fund
Definition
A mutual fund or ETF that aims to match the performance of a market index, such as the S&P 500, by holding the same securities. Index funds usually have low costs.
Example
An S&P 500 index fund holds the roughly 500 large U.S. companies in that index, in proportion to their size.
General educational information, not personal financial advice. See our disclaimer.
Go deeper
· Investing
ETF Basics, Done Right | A No-Shortcuts Guide for Young Investors
11 mins read3
· Investing
How to Start Investing With $500 or Less
25 mins read1





