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index fund

index fund

7 4.8
A fund that buys the same stocks or bonds as a market index to match its returns
  • noun
  • /ˈɪndɛks fʌnd/
  • Specialized
translation icon : fondo indexado
  • An index fund is a popular choice for investors who want to match market performance without picking individual stocks.
  • S&P 500 index fund
  • Vanguard index funds
  • low-cost index fund

Simple low cost long term index funds are fantastic ways to invest.

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Examples

  • I would suggest you invest in low-cost index funds to begin with a long-term objective as a way to supplement your retirement.

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  • We go mostly for the ESG index fund route when we're talking about stock market investing.

  • Do you know what your plan's index funds are up to?

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  • Now, most of my money is in index funds.

    Blog text (8)
  • Simple low cost long term index funds are fantastic ways to invest.

  • First, you can just keep it simple and buy an index fund or ETF.

  • Regardless of your experience level, it's a solid read and makes a compelling case for index funds.

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  • No wonder that a growing number of investors are opting for index funds.

    Blog text (13)
  • That's why you wanna invest in index funds rather than in individual stocks.

  • The person who invests for the long term in index funds or value stocks has a good system for long-term wealth accumulation.

    Blog text (8)

Synonyms

fund
vsindex fund
  • Specialized
458 3.1

Money that many people put together to buy stocks or bonds

is narrowly defined by copying a market index rather than general pooling
mutual fund
vsindex fund
  • Specialized
82 3.5

A way to invest money where many people put money together and experts buy many investments

is designed to copy a market index rather than be actively chosen
ETF
vsindex fund
  • Specialized
18 7.4

A fund you can buy and sell on the stock market like a share during the day

is focused on matching a market index rather than on trading mechanics
investment fund
vsindex fund
  • Specialized
6 3.4

A pool of money many people manage together to buy stocks and bonds to make money

is the specific type that copies a market index, not any pooled money
exchange traded fund
vsindex fund
  • Specialized
2 6.1

A fund you can buy and sell on a stock market that tracks an index like the S&P 500

is defined by copying a specific market index across different fund types

How Diversified

investment trust
  • UK
3 5.1
mutual fund
  • Specialized
82 3.5
index fund
  • Specialized
7 4.8
sector
608 3.0
stock
3.5

Surface Forms

index fund singular
index funds plural

Morphology

index + fund

The compound is directly compositional: 'index' (a market indicator) + 'fund' (a pooled investment vehicle) yields a fund that is based on or follows an index. The core meaning — a fund that tracks an index — is predictable from the constituents and cross-linguistically paralleled, so a B1 learner who knows both words would likely infer the MWE's basic sense.

Etymology

Index fund comes from the idea of a fund that simply buys what a market index lists. Imagine a pool of money following a shopping list of stocks so it 'matches the market', and that's why an index fund aims to give returns like the whole market and often has low fees.