index fund

Definition of "index fund"
  1. A type of mutual fund that aims to track the performance of a specific stock market index by mirroring its portfolio to the constituents of that index
How to use "index fund" in a sentence
  1. The portfolio manager decided to invest in an index fund to diversify the portfolio.
  2. Because of its low fees and broad diversification, the index fund has grown increasingly popular among investors.
  3. As an investment strategy, he decided to put a portion of his savings into an index fund.

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