index fund
nounUK /ˈɪn.deks fʌnd/
US /ˈɪn.deks fʌnd/
A basket of many stocks that you can buy all at once.
She put her savings into an index fund that follows the whole market.
RELATED WORDS
OTHER MEANINGS
2. A mutual fund or ETF designed to copy the performance of a specific market index.
The S&P 500 index fund returned about 10% last year.
3. An investment vehicle with low fees because it does not use active managers.
Index funds usually charge much lower fees than actively managed funds.
4. A fund whose holdings are weighted to match an index like the FTSE 100.
He bought a FTSE 100 index fund to gain broad UK exposure.