Index Fund
An index fund is a pooled investment vehicle designed to track a market index with low turnover and benchmark-like exposure.
Index fund, index investing, and exchange-traded fund terms used in passive investing.
Index Funds and ETF Basics terms describe exchange-traded funds, index products, ETF trading mechanics, creation and redemption, and specialized exchange-traded exposures.
Use this branch when the fund trades on an exchange or tracks an index, commodity, currency, sector, country, leveraged, inverse, or specialty exposure.
| Term | Use it for |
|---|---|
| Index Fund | A fund type or mandate term used to classify portfolio exposure. |
| Index Fund Investing | A fund type or mandate term used to classify portfolio exposure. |
Check index methodology, holdings, creation and redemption process, bid-ask spread, premium or discount, tracking difference, leverage or inverse reset terms, and tax treatment.
This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
An index fund is a pooled investment vehicle designed to track a market index with low turnover and benchmark-like exposure.
Index fund investing uses funds designed to track a market index rather than selecting securities through active management.