Index fund
A fund that buys every stock in an index, such as the S&P 500, and simply holds them. No stock picking, very low costs.
In plain English
Instead of choosing stocks, an index fund owns the whole index. It goes up and down with the market, and it rarely trades.
Uncle Gary explains
At the potluck, instead of guessing which dish will be best, you take a spoonful of everything. You never get only the best dish. You also never get only Kevin's experimental tuna salad.
Why it matters for your money
It is the boring baseline that every clever strategy has to beat.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.