Index Fund
/ˈɪndɛks fʌnd/
Definitions
- (n.) A type of mutual fund or exchange-traded fund designed to replicate the performance of a financial market index.
Investors often choose an index fund for diversified, low-cost exposure to the stock market.
Forms
- index fund
- index funds
Related terms
See also
Commentary
Index funds are commonly structured to comply with securities laws applicable to investment companies and may implicate regulatory considerations under investment advisers acts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.