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
- Vanguard Total Market Fund: Portfolio Anchor or Hidden Iceberg?
- Dow Tanks as Fears of Taper Rise
- Here's What the Biggest Hedge Fund Has Been Buying
- Should I Sell This 860% Gainer?
- Why G-III Apparel Group, BRE Properties, and CF Industries Are Today's 3 Best Stocks
- UnitedHealth Falls Victim to the Dow's Drop and Obamacare