Investing & Markets

Index Fund

A fund that passively tracks a market index, such as the S&P 500, rather than being actively managed.

Index funds hold the same securities as the index they track, in similar proportions, and are rebalanced periodically to match the index. Because they don't require active stock-picking, they typically charge much lower fees than actively managed funds, and historically many actively managed funds fail to beat their benchmark index over long periods.

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