Pure index fund

Pure index fund

A portfolio that is managed so as to perfectly replicate the performance of the market portfolio.

Pure Index Fund

A portfolio or fund that is actively managed such that its return exactly matches the return of the broader market. For example, if the market portfolio (a hypothetical portfolio of all assets available to investors) returns 3% in a given year, a pure index fund also returns 3%.
References in periodicals archive ?
For a pure index fund, AS will be close to zero, as the weight of each asset in the fund portfolio equals the asset weight in the benchmark index.
(5) Theoretically, AS for a pure index fund with very low tracking error should be close to zero.
However, we do not restrict our sample to pure index funds and ETFs, but also include enhanced index funds and closet indexers to construct a more complete measure of passive ownership.
In recognition of the growing awareness that a passive or indexed approach to equity investing frequently outperforms a large percentage of active managers on a pre-tax basis, and that it can outperform an even higher percentage on an after-tax basis, at least two mutual fund sponsors have created equity index funds that are "tax-managed" to provide even better after-tax performance than a pure index fund.