Index Fund (Noun)
Meaning 1
A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index.
Classification
Nouns denoting groupings of people or objects.
Examples
- An index fund is a type of investment vehicle that allows individuals to own a small piece of the overall market by tracking a specific stock or bond index.
- The financial advisor recommended investing in an index fund to minimize risk and maximize returns over the long term.
- By investing in an index fund, the investor can gain exposure to a broad range of assets without having to purchase individual stocks or bonds.
- The low fees associated with index funds make them an attractive option for investors who want to keep costs down.
- The index fund has consistently outperformed actively managed funds in recent years, making it a popular choice among investors.
Hypernyms
Meaning 2
A mutual fund whose assets are stocks on a given list.
Classification
Nouns denoting possession and transfer of possession.
Examples
- Investors looking for a low-risk option often turn to an index fund that tracks the S&P 500.
- The index fund was designed to mimic the performance of the Dow Jones Industrial Average.
- By investing in an index fund, she was able to diversify her portfolio without incurring high fees.
- He chose an index fund that focused on technology stocks, hoping to capitalize on the industry's growth.
- The financial advisor recommended an index fund that tracked the Russell 2000 for his client's retirement account.