![]() |
Index FundKnowledge Center |
9 items • 17.697 visits
What is an Index Fund? Meaning.An Index Fund is a mutual fund or exchange-traded fund that mirrors its portfolio to that of a particular index, such as the DJIA, NASDAQ, Hang Seng Index or the S&P 500. The target is that its performance matches the performance of a the index. They do not necessarily have to own all of the securities making up the index in the same composition; statistical sampling can be used. Index funds assume that it is impossible to consistently outperform
the market anyway because of Efficient Market Theory, so it is better to keep
the costs low. Index Funds do that, because they are passively managed and
do not require highly educated professional strategists and financial experts,
since they merely mirror an index.
Compare with: Mutual Fund | Fundamental Analysis | Technical Analysis | Capital Asset Pricing Model | Behavioral Finance | Investor Sentiment | Institutional Investors | Rebalancing |
|
Return to Management Hub: Finance & Investing More on Management | Return to Management Dictionary |
This ends our Index Fund summary and forum. |
About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 7-6-2023. All names ™ of their owners.