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by F Dubya on November 13th, 2006

F Dubya

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What is an "index fund"?

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Answers. 2 helpful answers below.

  • by ptrask on November 13th, 2006

    ptrask

    AN index fund is a mutual fund that tries to follow or "index" some market indicator such as the Dow Jones Industrial Average, or the S&P 500. They usually do so by investing in stocks that are used by the indexes. The theory is, that if you invest in the stocks that make up the DJIA, if that average moves up, the fund will move up. A list of indexes for the NYSE can be found on this page.

    http://www.nyse.com/

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  • by aleish on January 17th, 2007

    aleish

    INDEX FUND is a collective investment scheme that aims to replicate the movements of an index of a specific financial market. It is also called index tracker.

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