Index fund — meaning explained

Index fund: A fund that copies a whole market.

What it means

Instead of picking winners, an index fund buys everything in a list like the S&P 500. Low cost, no guessing, and historically hard to beat over decades.

Category

Basics — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.