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Home > QFINANCE Dictionary > Definition of index tracker

Definition of

index tracker

Stockholding & Investments

mutual fund linked to stock exchange index a mutual fund composed of companies listed in an important stock market index in order to match the market's overall performance.

Related definitions of "index tracker"

Recommended Further Reading (Term count)
  • Money Managers
    by David Pitt-Watson
    Money managers (also known as fund managers or investment managers) manage money on behalf of other people. In most Western countries more than half the population will, directly or indirectly, have a money manager working for them. The managers find suitable investments, and are usually given the discretion by clients to make investments on their behalf.It is usually the client who owns the investment and takes the risk that it will do well or...
index tracker - Related Articles

  • The Impact of Index Trackers on Shareholders and Stock Volatility

    Best Practice

    Stock indexing, where investment portfolios mimic or replicate market indexes, has profound implications for both firms and investors. The practice stems from theoretical research which suggests that markets are informationally efficient. Since security prices generally reflect all public information, there is no point in employing active fund management and paying for investment research if there is no prospect of reliably beating the market
    By Martin Gold

  • The Efficient Market Hypothesis

    Checklists

    The EMH led to the argument that a blindfolded chimpanzee throwing darts at the Wall Street Journal would perform as well as highly-paid investment managers. The inevitable conclusion was that investors would be better off placing their money in broad-based index or tracker funds, which reflect

  • Money Managers

    Best Practice

    to buy and sell shares and instead hire them to track the market, or the market index. These funds, known as index tracker funds, now account for a significant part of the equity market.
    By David Pitt-Watson

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Definitions of ’index tracker’ and meaning of ’index tracker’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’index tracker’ and other financial terms with our online QFINANCE Financial Dictionary.

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