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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

  • Open-end Investment Company
  • Mutual Fund Company
  • Open-end Fund

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.
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