Tracker Fund An index fund that tracks a broad market index or a segment thereof. Such a fund invests in all, or a representative number, of the securities within the index.
Also know as an "index fund". Investopedia Says: The term "tracker fund" comes from the tracking function of index fund management, which attempts to replicate the performance of a market index.
Investing in an index fund is a form of passive investing. The primary advantage to such a strategy is the lower expense ratio on an index fund. Also, a majority of mutual funds fail to beat broad indexes such as the S&P 500. Related Terms: Index Index Fund Mutual Fund Passive Investing |