English Lexicon

Index fund

/ˈɪn.dɛks fʌnd/
nounCEFR C1 (Advanced)Top #8500 frequency
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Comprehensive Definitions & Senses

1 sense
As noun
  1. 1

    A mutual fund or exchange-traded fund designed to follow certain preset financial indexes.

    "She decided to invest her retirement savings in a low-cost index fund."

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Synonyms (1)

Linguistic Origin & Historical Etymology

Derived from the noun 'index' (from Latin index, 'pointer, sign') combined with 'fund' (from Latin fundus, 'bottom, piece of land, foundation'). First popularized in the late 20th century with the creation of the first passive index mutual funds, representing a shift toward unmanaged, market-tracking investment strategies.

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