The fund that is structured to match the performance of a certain market segment is known as a(n)_____ fund.

Question

Quizplus · Accepted Answer

An index fund is designed to replicate the performance of a particular market index, such as the S&P 500 or the Dow Jones Industrial Average. This means that the fund's holdings will mirror those of the underlying index, which eliminates the need for active management and reduces fees. Index funds typically have lower expense ratios and can provide broad exposure to the stock market, making them a popular choice for many investors.

The Fund That Is Structured to Match the Performance of a Certain