Index fund

An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) with specific rules of construction that are adhered to regardless of market conditions. Those rules may include trading or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allows for greater tracking error, but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.

Index fund

An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) with specific rules of construction that are adhered to regardless of market conditions. Those rules may include trading or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allows for greater tracking error, but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.