What Are Tracker Funds?

What Are Tracker Funds?
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  1. “According to a definition, “”An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.””
    Broadly speaking, we can say that a tracker fund is an index fund which generally tracks a broad market index or a segment of it. As explained in the above definition tracker funds are also known as index funds, designed to offer investors exposure to the whole index at a low cost. These funds intend to copy the holdings and performance of an indicated index.”

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