| A fund that aims to achieve the same returns as a chosen share index by investing in all the companies in the index according to a market value weighting. Proponents of tracker funds argue that: although active funds try to beat the index many actually underperform it, a fund that can guarantee to do as well as the index may not be the most ambitious, but its results will be better than many more ambitious funds, and costs are lower because a tracker fund invests in a programmatic way and does not need analysts and researchers determining portfolio selection.
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