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What is the purpose of an index fund?

What is an 'Index Fund'. An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.

What are index funds and ETFs?

Index funds and ETFs offer a diversified pool of assets, giving investors access to stocks, bonds and potentially other markets. In both an index fund and an ETF, the investor has a straightforward strategy that tracks the breadth of the market by buying shares in a low-cost index.

What is Vanguard Energy index fund?

Vanguard Energy Fund is an open-end fund incorporated in the USA. The Fund seeks long-term capital appreciation. The Fund invests in the common stocks of companies engaged in energy-related activities such as production and transmission of energy or energy fuels, and the making of component products for such activities.

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