A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- S&P 500An index tracking about 500 of the largest U.S. companies, widely used as a snapshot of the overall market.
- Stock Market IndexA measure that tracks a group of stocks to show how a part of the market is performing overall.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
- AlphaThe extra return an investment earns above or below what its risk level and the market would predict.
- Tracking ErrorHow far an index fund's returns drift from the index it is built to copy.
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Plain-English education — not personalized legal, tax, or investment advice.