An index fund is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance of a specified basket of underlying securities (most often a stock market index or a bond market index). The main advantage of index funds for investors is that they are difficult to outperform consistently.
An index fund is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance of a specified basket of underlying securities (most often a stock market index or a bond market index). The main advantage of index funds for investors is that they are difficult to outperform consistently.
Source: Wikipedia "Index fund" · CC BY-SA 4.0
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