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VORADictionaryC1Index fund
CEFR C1 — Advanced

Index fund

Definition

(formal) A type of investment fund that aims to track the performance of a specific stock market index, such as the S&P 500, by holding a representative sample of the same securities in the same proportions as the index.

Example Sentences

1Many investors choose to put their money into an index fund rather than trying to pick individual stocks.
2Can you explain the benefits of investing in an index fund versus an actively managed fund?
3The company's decision to launch a new index fund was seen as a response to growing demand for low-cost investment options.
4To minimize risk, consider diversifying your portfolio by investing in a mix of index funds and individual stocks.
5Some critics argue that the rise of index funds has led to a lack of accountability among corporate leaders, as investors are no longer incentivized to engage with individual companies.

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