An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500 or NASDAQ. Index funds aim to provide broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index no matter the state of the markets and are considered passive investments, as they do not require managers to make decisions about which securities to invest in. They are popular among investors who prefer a passive investment strategy.
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About the author
Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.
Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.