Index funds

These mutual funds are passively managed to closely track the performance of a broad-based equity or fixed income market index.

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Additional information

Index funds, also known as passively managed funds, offer investors broad exposure to a specific stock market or fixed income market by closely tracking the performance of a recognized market index.  Unlike actively managed mutual funds, there is no active  selection of individual stocks or securities and the risk and return characteristics of the index fund are limited to those of the particular index it tracks.  Equity indices like the S&P/TSX Composite Index or S&P 500 Index will generally have more risk than a broad based fixed income index such as the FTSE Canada Universe Bond Index, but less than a more narrowly defined sector index such as the technology-focused Nasdaq 100 Index.