Definitions from the Web
Index Fund
An Index Fund is a type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific financial market index, such as the S&P 500. It is designed to provide broad market exposure and low costs to investors.
Types of Index Funds:
- Equity Index Funds: These index funds aim to track the performance of a specific stock market index, such as the Nasdaq Composite or the Dow Jones Industrial Average.
- Bond Index Funds: Bond index funds seek to mirror the performance of a bond market index, like the Barclays US Aggregate Bond Index.
- International Index Funds: International index funds invest in securities from various international markets with the goal of replicating the performance of a global stock market index.
- Sector Index Funds: Sector index funds focus on a specific industry or sector, for instance, technology, healthcare, or energy.
Sample Sentences:
- Jack decided to invest his savings in an index fund that tracks the performance of the S&P 500.
- The bond index fund she picked has consistently provided steady returns over the past few years.
- Emily plans to diversify her portfolio by adding a few international index funds.
- The technology sector index fund experienced significant growth due to increasing demand for tech stocks.
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