Exchange Currency

passive exchange traded fund

A fund formulated to mimic the activity of a major stock index, such as the Nasdaq. A passive exchange traded fund tends to perform as well or as poorly as the index it matches. Investors generally pay low fees for these funds because minimal fund manager involvement is required. The fund can be traded on an intraday basis. Opposite of active exchange traded fund (ETF).

Related information about passive exchange traded fund:
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