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Funds

Index Fund

A passive fund designed to replicate a market index's performance.

In depth

Index funds (mutual or ETF) charge much lower fees than active funds (often 0.03-0.20% vs. 0.50-1.50%). Studies repeatedly show that low-cost index funds outperform majority of active funds over long periods, primarily due to fee drag.

Frequently asked about Index Fund

What is Index Fund?

A passive fund designed to replicate a market index's performance. Index funds (mutual or ETF) charge much lower fees than active funds (often 0.03-0.20% vs. 0.50-1.50%). Studies repeatedly show that low-cost index funds outperform majority of active funds over long periods, primarily due to fee drag.

Why does Index Fund matter for investors?

In funds, Index Fund is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Index Fund used in practice?

Index funds (mutual or ETF) charge much lower fees than active funds (often 0.03-0.20% vs. 0.50-1.50%).

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