What is Index fund?
An index fund is a mutual fund or ETF that aims to match the performance of a market index, such as the S&P 500, rather than trying to beat it.
Because it simply holds what the index holds, an index fund needs no stock-picking team and usually charges low fees.
Why it matters to you
Low-cost index funds are a common core holding for long-term investors.
FAQ
What is Index fund?
An index fund is a mutual fund or ETF that aims to match the performance of a market index, such as the S&P 500, rather than trying to beat it.
Can an index fund lose money?
Yes. It rises and falls with the index it tracks.
All plain-English definitions → · Educational only, not investment advice.
