Glossary Terms > Index Fund > What is an Index Fund?

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An index fund is a portfolio of assets with allocation rules that remain fixed regardless of market conditions, commonly for the purpose of approximating the performance of some market index, such as the Russell 2000 Index. The index fund does not have to be linked to an existing index. Typically, an index fund is either a mutual fund or an exchange traded fund (ETF).

Last updated on May 14, 2009 by Jack Parsons

Sources of definitions:

FINRA website, investor words . com, US Legal definitions, MSRB website, dictionary . com, SEC website

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