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Index Funds

Index Funds

Last Updated: January 23, 2026

Index funds are investment funds tracking a market index, offering broad exposure and typically low fees.

Index funds are investment vehicles designed to replicate the performance of a specific market index, such as the S&P 500. They aim to mirror the movements of the index they track by holding all or a representative sample of the securities within that index. This passive investment approach offers broad market exposure, diversification, and typically lower fees compared to actively managed funds. Investors benefit from reduced risk through diversification and cost efficiency. Index funds are popular among those seeking a straightforward, low-cost way to invest in the market, often resulting in competitive returns over the long term.