6.4. Index and EFT Funds

An index fund is a passively managed mutual fund that tries to mirror the performance of a specific index. Since portfolio decisions are automatic and transactions are infrequent, expenses tend to be lower than those of actively managed funds. Exchange Traded Fund/ETF is a type of open-ended listed investment fund that combines some of the characteristics of shares and managed funds. Index funds are often traded in real time on exchanges, therefore they also EFT funds.

In the following table, the Index funds and EFT funds as of Dec. 2007 are listed.