Glossary

Index Fund

DEFINITION

An index fund is designed to match the returns of a market index as closely as possible. The fund manager usually changes the portfolio only when the index itself changes, such as when the weight of stocks changes or when stocks are added or removed.

ELI5

It is like copying a list instead of trying to beat it. The fund mostly follows the index and only changes when the index changes.

Other related terms

Cryptography

Learn more

Secured Loan

Learn more

Price/Earnings-to-Growth (PEG) Ratio

Learn more

Insured Perils Coverage

Learn more