A type of investment designed to match or track the types of stocks found in a market index, such as the S&P 500. Instead of buying each stock in an index individually, it’s one-stop shopping that gives you exposure to the whole index by buying one share of the index fund. So when you hear commentators say “The S&P is up”/“The S&P is down” and you are invested in the S&P index fund, then you’re up or down for the day. (See also: S&P 500, Dow)
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