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 These Stocks the Best Investments You Can Possibly Make?
- 1 Big Investing Mistake Many Millennials Are Making
- What You Need to Know About Credit Card Rates
- 3 Things You Must Learn From Investing Guru Peter Lynch
- How Much Should You Really Count on Social Security for Your Retirement?
- 3 Reasons iShares MSCI Brazil Index ETF (EWZ) Shares Could Fall