passive fund
nounUK /ˈpæsɪv fʌnd/
US /ˈpæsɪv fʌnd/
A passive fund is a basket of investments that just copies a list of companies instead of having a person pick them.
My parents put some money in a passive fund that follows the whole stock market.
RELATED WORDS
OTHER MEANINGS
2. An investment vehicle that aims to match the returns of a market index rather than beat it.
The passive fund charges very low fees because no manager is choosing stocks.
3. A collective investment scheme whose holdings are set by a rule, not by active decisions.
She switched from an active fund to a passive fund to save on costs.
4. A fund designed to mirror a published index such as the FTSE 100 or S&P 500.
This passive fund tracks the S&P 500 almost exactly.