Finance & Banking

Index fund

ˈɪndeks fʌnd

noun

What does Index fund mean?

A fund tracking a whole market index.

Example sentence

"I invest monthly in an S&P 500 index fund."

American usage tip

Low fees, broad diversification — the classic advice.

Related Finance & Banking words

W-2
The annual wage form employers send for taxes.
Interest rate
The cost of borrowing or reward for saving.
401(k)
An employer retirement account with tax benefits.
Budget
A plan for income and spending.
Cashback
A percentage of spending returned to you.
Wire transfer
A fast bank-to-bank money transfer.
Employer match
Free money your company adds to your 401(k).
Overdraft
Spending more than your account holds.

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