What is a 'Tracker Fund'
BREAKING DOWN 'Tracker Fund'
The term "tracker fund" comes from the tracking function of index fund management, which attempts to replicate the performance of a market index.
Investing in an index fund is a form of passive investing. The primary advantage to such a strategy is the lower expense ratio on an index fund. Also, a majority of mutual funds fail to beat broad indexes such as the S&P 500.