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
- 3 Simple Ways to Become a Millionaire
- 5 Frightening Retirement Statistics That Demonstrate Baby Boomers Are in Serious Trouble
- 55% of Young People Are Making This Critical Error. Are You Doing It, Too?
- Why Social Security Reform Will Never Happen (And Why That Shouldn't Worry You)
- Battery Tech Bringing an End to Oil As We Know it? Not So Fast
- 3 Mutual Fund Myths That Are Just Plain Wrong