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Glossary

Index fund

A fund that tracks a market index rather than picking stocks.

Index fund

A fund that tracks a market index rather than picking stocks.

In practice

A fund that tracks a market index rather than picking stocks. Understanding it helps you read the rest of our coverage with confidence.

Frequently asked

Why does Index fund matter?
Because it changes how you should read the numbers.
Is Index fund the same everywhere?
Definitions vary slightly by region and source.