An investment fund whose investment strategy is to replicate a reference index, usually of variable income. It is characterized by having lower fees than active management funds. They replicate indices by acquiring the values that make up the index (physical replication) or by using derivative instruments (synthetic replication). Not to be confused with exchange-traded funds (ETFs) which, unlike indexed investment funds, are traded and fiscally treated as shares, meaning that they are not allowed for fiscal transfer to individuals.
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