Definitions for index fund
in·dex fund

Princeton's WordNetRate this definition:0.0 / 0 votes

1. index fundnoun

   a mutual fund whose assets are stocks on a given list

2. index fundnoun

   a mutual fund that invests in the stocks that are the basis of a well-known stock or bond index

WikipediaRate this definition:0.0 / 0 votes

1. Index fund

   An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. While index providers often emphasize that they are for-profit organizations, index providers have the ability to act as "reluctant regulators" when determining which companies are suitable for an index.: 1244–45  Those rules may include tracking prominent indexes like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allow for greater tracking error but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria. An index fund's rules of construction clearly identify the type of companies suitable for the fund. The most commonly known index fund in the United States, the S&P 500 Index Fund, is based on the rules established by S&P Dow Jones Indices for their S&P 500 Index. Equity index funds would include groups of stocks with similar characteristics such as the size, value, profitability and/or geographic location of the companies. A group of stocks may include companies from the United States, Non-US Developed, emerging markets or frontier market countries. Additional index funds within these geographic markets may include indexes of companies that include rules based on company characteristics or factors, such as companies that are small, mid-sized, large, small value, large value, small growth, large growth, the level of gross profitability or investment capital, real estate, or indexes based on commodities and fixed-income. Companies are purchased and held within the index fund when they meet the specific index rules or parameters and are sold when they move outside of those rules or parameters. Think of an index fund as an investment utilizing rules-based investing. Some index providers announce changes of the companies in their index before the change date whilst other index providers do not make such announcements. The main advantage of index funds for investors is they don't require much time to manage as the investors don't have to spend time analyzing various stocks or stock portfolios. Most investors also find it difficult to beat the performance of the S&P 500 Index. Some legal scholars have previously suggested a value maximization and agency-costs theory for understanding index funds stewardship.: 4  One index provider, Dow Jones Indexes, has 130,000 indices. Dow Jones Indexes says that all its products are maintained according to clear, unbiased, and systematic methodologies that are fully integrated within index families.As of 2014, index funds made up 20.2% of equity mutual fund assets in the US. Index domestic equity mutual funds and index-based exchange-traded funds (ETFs), have benefited from a trend towards more index-oriented investment products. From 2007 through 2014, index domestic equity mutual funds and ETFs received $1 trillion in new net cash, including reinvested dividends. Index-based domestic equity ETFs have grown particularly quickly, attracting almost twice the flows of index domestic equity mutual funds since 2007. In contrast, actively managed domestic equity mutual funds experienced a net outflow of $659 billion, including reinvested dividends, from 2007 to 2014.

ChatGPTRate this definition:0.0 / 0 votes

1. index fund

   An index fund is a type of mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. It aims to replicate the performance of a specific index such as the S&P 500 or the Dow Jones Industrial Average. Index funds are generally considered to be passive investments because they mirror an index, and as such they typically have lower fees and expenses compared to actively managed funds.

WikidataRate this definition:0.0 / 0 votes

1. Index fund

   An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions. As of 2007, index funds made up over 11% of equity mutual fund assets in the US.

Matched Categories

1. • Mutual Fund

How to pronounce index fund?

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How to say index fund in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of index fund in Chaldean Numerology is: 7

2. Pythagorean Numerology

   The numerical value of index fund in Pythagorean Numerology is: 2

Examples of index fund in a Sentence

1. Rob Petrozzo:

   You have these young, really knowledgeable, tech-enabled investors who would rather be a little early to the party than late, they're putting their money where their mouth is — and they're not putting it in an index fund.

2. Dejan Ilijevski:

   The most important feature to consider is cost, which has the potential to significantly impact returns over the long term. There is absolutely no reason to pay more than a few basis points to own an index fund.

3. Todd Rosenbluth:

   There's a very small handful of managers who are known, and like everybody else they are getting older and sooner or later they will be retiring, at that point it's not inconceivable for investors to say I'm just going to choose a Vanguard 500 index fund from now on.

4. Loren Fleckenstein:

   An advisory firm which pulled client assets from the Pimco Total Return Fund after Bill Gross left and parked the money in a bond index fund allocated part of the proceeds last month to the DoubleLine Core Fixed Income Fund, so I guess you could call it a delayed 'Newport Beach effect'.

5. Todd Rosenbluth:

   You can jumpstart your index fund by cutting the price, there is a Catch-22, though, as you risk reducing the profitability of such a product with that strategy.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=index fund
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Index_Fund
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=index fund