All Channels

Personal Finance

Investing

Stock Markets

What is an "index fund"?

Subject to Terms, Conditions & Disclaimer | Viewing problems? | Report problem

			Text Version

What is an "index fund"?

An index fund is a mutual fund that buys securities that represent some index. As an example, if we were to take the S and P500 index, an index fund that was representing that index would buy those 500 securities in the same relative weighting as the index has those securities. It's really just implementing that index with real stocks. One of the good advantages of an index fund is they tend to have really low expense ratios and they have very low turnover, which are key factors when looking at the quality and the long term expected returns of a mutual fund.

Thanks for watching our video What is an "index fund"? For more how to videos, expert advice, instructional tips, tricks, guides and tutorials on this subject, visit the topic Stock Markets.

Made By

Scott Leonard, CFP

This question is part of an interview on the subject

Mutual Funds Types

Watch the whole interview

Embed:

more ...

Stock Markets

Investing Basics

Stock Indexes

Mutual Funds Types (Now Playing)

News And The Stock Market

Stock Market Terms

How The Markets Work

Stocks Nuts And Bolts

Stock Investing Strategies

Market Trends

Investment And Risk

Insurance Investment Products

Alternative Investment Vehicles

Retirement Investing

Investment Advisors

Investment Consumer Protection

Investing For College

Investment Scams

Retirement Investing: When To Start

How To Start Saving For Your Child's College Education

How To Calculate The Potential Cost Of College For Your Child

How To Analyze Your Investment Advisor's Performance

How To Choose The Investment Advisor Who Is Right For You

How To Determine Your Investment Risk Profile

How To Check To See If A Particular Investment Advisor Is Licensed And In Good Standing

How To Lodge A Complaint Against Your Investment Advisor

How To Identify An Investment Scam

How To Avoid Money Investment Scams

How To Invest If You Are Married With Children

How To Invest If You Are Close To Retirement Age

How To Invest If You Are Retired

Investing:
Advice For Investors	Bonds	Estates & Trusts	Mutual Funds	Real Estate Development	Stock Markets

Money & Careers:
Business & Start-Ups	Inventions	Legal	Networking & People Skills	Personal Finance
Careers Advice	Job Search Advice	Losing Your Job	Office Life

All Channels:
Beauty & Style	Family & Education	Health & Wellbeing	Love & Dating	Money & Careers	Technology & Cars
Creative & Culture	Food & Drink	Lifestyle & Home	Made By You	Sports & Outdoors

What is an "index fund"?

What is an "index fund"?

Made By

Stock Markets

Related Topics

Q & A - Money & Careers

Recent Q & A

What is an "index fund"?

What is an "index fund"?

Made By

Stock Markets

Related Topics

Q & A - Money & Careers

Recent Q & A

Popular Topics - Money & Careers