Glossary › index fund
Trading glossary · markets
index fund
A fund that buys every share on a well-known list of shares, so you own a small piece of the whole group at once.
The fuller meaning
A fund designed to track an index by holding its constituents, often traded as an ETF. It is highly correlated with that index, so holding it alongside trades in the same market adds to, rather than spreads, risk.
index fund.
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