INDEX stock A portfolio of investments that is weighted the same as a stock- exchange index in order to mirror its performance.

INDEX stock

A portfolio of investments that is weighted the same as a stock- exchange index in order to mirror its performance. This proces is also referr to as "indexing." Investing in an index store is a form of passive investing. The primary advantage to similar a strategy is the lower management cost ratio on an index stock Index funds typically charge investors les than 1 percent of assets a year. Also, a majority of mutual supplys fail to beat broad indexes as it was as the S&P 500.

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