An index fund is a type of mutual fund that is constructed to match the components of a market index.
A passively managed mutual fund that seeks to match the performance of a particular market index. Partially because of lower expenses, index funds outperform the majority of actively managed mutual funds.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Are Small-Cap and Emerging-Market Funds a Good Idea?
- Things You Can Do That Wall Street Can?t
- An Overlooked Income ETF That Could Be a Big Winner
- How to Design a Core and Satellite Portfolio Strategy
- Berkshire Hathaway Doesn't Need Warren Buffett -- And That's a Good Thing
- Shorts Are Piling Into These Stocks. Should You Be Worried?