What Is Index Fund?
Definition and plain-English explanation of "Index Fund"
An index fund is a mutual fund or ETF designed to track the performance of a market index like the S&P 500, rather than trying to beat it. Because they are passively managed, index funds charge very low fees and consistently outperform the majority of actively managed funds over the long term — a core building block of beginner portfolios.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.