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What is an Index Fund? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

An index fund is a passively-managed mutual fund that tries to mirror the performance of a specific index, such as the S&P 500. Since investment trades within an index fund's portfolio are automatic and infrequent, expenses tend to be lower than those of actively managed funds.

 

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