INDEX FUND Definition & Meaning

index fund

noun

a fund, as a mutual fund or pension fund, with a portfolio that contains many of the securities listed in a major stock index in order to match the performance of the stock market generally.

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�y��vlog History and Origins

Origin of index fund¹

First recorded in 1975–80

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Example Sentences

Most actively managed stock funds kept up their record last year of trailing index funds by a wide margin.

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And there are other investment options aside from the S&P 500, of course, like socially responsible index funds and ESG funds, composed of companies that consider environmental, social, and governance issues.

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The debate isn’t really about whether index funds perform better than actively managed funds — that debate is essentially over, and indexing wins, hands down.

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I own the stock indirectly, as a holder of Vanguard index funds through my workplace retirement plan.

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All three companies are listed on major stock indexes, which means you invest in them if you invest in a corresponding index fund.

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