An index fund is...
An index fund is a type of mutual fund or exchange-traded fund (ETF) designed to follow the performance of a specific market index, such as the S&P 500 or the NASDAQ. These funds aim to replicate the movements of the index they track, offering broad market exposure, low operating expenses, and low portfolio turnover. By holding a diverse range of securities, index funds seek to provide a passive investment strategy, reducing the risks associated with picking individual stocks. It’s important to note, however, that like any investment, index funds do not guarantee returns and are subject to market risks.