index fund

American  

noun

1. a fund, as a mutual fund or pension fund, with a portfolio that contains many of the securities listed in a major stock index in order to match the performance of the stock market generally.

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Etymology

Origin of index fund

First recorded in 1975–80

Example Sentences

Active management, by shifting capital allocation across sectors and avoiding excessive concentration in any one sector, may serve investors better than a low-fee index fund.

From MarketWatch • Apr. 22, 2026

Now is the time for him to move beyond holding large amounts of cash and begin investing in a diversified low-cost index fund or exchange-traded fund.

From MarketWatch • Apr. 16, 2026

The $117 billion index fund targets companies that have raised dividends for at least 10 years.

From Barron's • Apr. 8, 2026

To Cliffwater executives, the criticism is no different than what Jack Bogle received when he created the first low-cost index fund at Vanguard.

From The Wall Street Journal • Apr. 1, 2026

A year earlier, just 21% of all managers did better than an index fund compared with 70% of small-cap managers.

From The Wall Street Journal • Mar. 30, 2026