index fund

noun

1. a fund, as a mutual fund or pension fund, with a portfolio that contains many of the securities listed in a major stock index in order to match the performance of the stock market generally.

Word History and Origins

Origin of index fund¹

First recorded in 1975–80

Example Sentences

But doctors are trained in medicine; firefighters know how to fight fires; teachers teach — why do we all have to learn about index funds and diversification too?

From Salon

If you want to cash out shares of an index fund or stock, you can simply visit your online brokerage or investment company’s website and click “sell.”

From Salon

They own shares of large companies from Amazon to Microsoft, and put money into private equity, hedge funds and index funds.

From BBC

They own shares of large companies from Amazon to Microsoft, and put money into private equity, hedge funds and index funds.

From BBC

Powerful institutional investors like mutual funds and index funds typically run the show.

From New York Times